Business Litigation - Monday, September 22, 2008 9:54 - 0 Comments

Lawsuit threatens Sarbanes-Oxley act

In 2002, Congress passed a law aimed at punishing corporations for publishing false information in their financial statements. Regrettably, the future of this law, known as the Sarbanes-Oxley Act (SOX), is now in jeopardy. An accounting firm has filed a lawsuit in a Washington DC federal court questioning the law’s constitutionality. This law is essential to the nation’s need for accurate and honest corporate reports and Congress could rescue SOX by revising it. This law is also important because employee shareholders and regular investors alike, rely on these statements when determining how much of their retirement savings to invest in particular companies.

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