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Supreme Court Strikes Down Corporate Fraud Provision

In a Supreme Court decision handed down today, a 5-4 ruling led by Chief Justice John Roberts axes a key provision of the 2002 Sarbanes-Oxley bill, passed in the wake of the accounting scandals that took down the likes of Enron and Worldcom.

The ruling has to do with the Public Company Accounting Oversight Board, which currently has broad authority over accounting firms.

The high court said that Sarbanes-Oxley gives the board too much power, thus violating the Constitution's separation of powers provisions.

Today's decision leaves most of the law intact, but allows the Securities and Exchange Commission, or SEC, to remove the board's members at will.