SEC Can Use SOX To Claw Back Exec Bonuses, Judge Rules

Law360, New York (November 13, 2012, 6:13 PM EST) -- A Texas federal judge refused Tuesday to dismiss a U.S. Securities and Exchange Commission suit demanding that two former ArthroCare Corp. executives repay bonuses and stock profits under a provision of the Sarbanes-Oxley Act, rejecting their assertions that the complaint was unconstitutional.

Despite the fact that former ArthroCare CEO Michael A. Baker and chief financial officer Michael T. Gluk weren't directly involved with an alleged fraud carried out by two subordinates, U.S. District Judge Sam Sparks said that by signing SEC filings, corporate officers are making...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

Securities and Exchange Commission v. Baker et al


Case Number

1:12-cv-00285

Court

Texas Western

Nature of Suit

Securities/Commodities

Judge

Sam Sparks

Date Filed

April 2, 2012

Law Firms

Companies

Government Agencies

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.