District Court Allows Clawbacks of Bonuses Under Sarbox From Executives Not Accused of Misconduct | Practical Law
An update on an order issued by the federal district court in Arizona in SEC v. Jenkins, holding that Section 304 of Sarbox allows the SEC to "clawback" incentive-based and equity-based compensation and stock sale profits of executives at companies that restate financial statements due to misconduct, even if the executives are not accused of personal involvement in the wrongdoing.