SEC Can't Use SOX To Claw Back Bonuses: ArthroCare Execs

Law360, New York (July 16, 2012, 8:00 PM EDT) -- Two former ArthroCare Corp. executives urged a Texas federal judge Friday to dismiss as unconstitutional a U.S. Securities and Exchange Commission suit demanding repayment of bonuses and stock profits under an oft-overlooked provision of the Sarbanes-Oxley Act.

In separate motions, Michael A. Baker, the company's former CEO, and Michael T. Gluk, its chief financial officer, argued that the SEC was wrong to use SOX's Section 304 against individuals who weren't directly involved with an alleged fraud.

On April 1, the SEC sued Baker and Gluk for allegedly failing to reimburse the Austin, Texas-based company for bonuses, incentive pay and profits from...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Attached Documents

Related Sections

Case Information

Case Title

Subscribers Only

Case Number

Subscribers Only

Court

Subscribers Only

Nature of Suit

Subscribers Only

Judge

Subscribers Only

Date Filed

Subscribers Only

Law Firms

Companies

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!