No Private Right to Sue Under SOX; Only SEC May Enforce, Judge Says

Law.com is reporting that a federal court has held that there is no private right of action under Section 304 of the Sarbanes-Oxley Act (SOX). Here's some of the story:

"A federal judge has ruled that §304 of the Sarbanes-Oxley Act -- a key provision of the 2002 law that calls for disgorgement of profits and bonuses from top corporate executives in the wake of an alleged accounting scandal -- does not provide a private right of action for shareholders to file a derivative suit."

"The decision by U.S. District Judge Stewart Dalzell in Neer v. Pelino is the first in the nation to squarely address the question of whether §304 creates an implied private right of action."

For the full story, visit Law.com at http://www.law.com/jsp/article.jsp?id=1127984715140.