Law360, New York (December 15, 2008, 12:00 AM EST) -- Shortly after the passage of the Sarbanes-Oxley Act of 2002, private plaintiffs began adding claims for violations of Section 304 of the Sarbanes-Oxley Act (“SOX 304”) to shareholder derivative complaints.
SOX 304 provides that “[i]f an issuer is required to prepare an accounting restatement due to the material noncompliance of the issuer, as a result of misconduct, the chief executive officer and chief financial officer of the issuer shall reimburse the issuer for
1) any bonus or other incentive-based or equity-based compensation received by that person...
Digimarc: The Final Nail In The SOX 304 Coffin
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