We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Only SEC Can Seek CEO Bonuses Under Sarbanes-Oxley, Federal Court Rules

Law360 (October 3, 2005, 12:00 AM EDT) -- Only the Securities and Exchange Commission can take legal aim at bonuses received by corporate executives when an accounting scandal leads to a restatement of earnings, according to a much-watched interpretation of the Sarbanes-Oxley Act.

The decision stems from an October 2004 shareholder derivative action brought against Pennsylvania-based logistics management company Stonepath Group Inc. and its top management. The suit cited provision 304 of the Act to force the defendants to turn over their bonuses.

Section 304 requires, upon finding of liability, that a company’s chief...
To view the full article, register now.
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.