Judge: SEC Can Seek Reimbursement Of Compensation Under Act

AUSTIN, Texas - A federal judge in Texas on Nov. 13 ruled that the Securities and Exchange Commission may seek reimbursement of executive compensation against certain executives of a company under Section 304(a) of the Sarbanes-Oxley Act of 2002 even though they are not directly involved with a particular fraudulent action because the defendants held their executive officer positions within the company and signed SEC quarterly and annual financial statements that were subject to restatements as a result of the alleged fraud (Securities and Exchange Commission v. Michael A. Baker, et al.,  No. 12-285, W.D. Texas; 2012 U.S. Dist. LEXIS 161784).

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