A few weeks ago, I discussed the pending legal challenge that could have threatened to dismantle the Sarbanes Oxley Act. (See here). That case has now been decided.
The U.S. Appeals Court for the District of Columbia Circuit ruled 2-1 yesterday and upheld the legality of the Public Company Accounting Oversight Board, rejecting arguments that the PCAOB violates the Separation of Powers doctrine. An attorney for plaintiffs have indicated they will appeal either to the U.S. Supreme Court or seek a rehearing en banc. U.S. Securities and Exchange Commission Chairman Christopher Cox said the decision was “welcome news for the commission, investors and U.S. capital markets.”
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