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...
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