Thursday, January 18, 2007
A federal district court in the Northern District of Ohio agreed with other district courts that find no private cause of action under SOX 304, which requires the CEO and the CFO to disgorge profits to the issuer when earnings are restated, and dismissed a derivative suit. While not surprising, it leaves one to wonder how this provision is to be enforced. In re Goodyear Tire & Rubber Co. Derivative Litigation.