PCAOB Withstands Constitutional Challenge

So ruled the DC Circuit in Free Enterprise Fund v. PCAOB (D.C. Cir. Aug. 22, 2008). By a 2-1 decision, the D.C. Circuit held that Title I of the Sarbanes-Oxley Act, which created the Public Company Accounting Oversight Board (PCAOB), was constitutional and did not violate the appointments clause and separation of powers. For the best analysis in the legal blogosphere, check out the series of posts at The Race to the Bottom. Appeal to the Supreme Court is expected. [JH]