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Civil Litigation,
Corporate

Nov. 19, 2005

Private Plaintiffs Smell Blood In Section of Sarbanes-Oxley

With corporations still reeling from the expansive ramifications of the Sarbanes-Oxley Act of 2002, another complication may be emerging for corporate officers under the act's Section 304 - a complication that could add substantially to the price defendants pay in securities litigation.

William F. Sullivan

Partner Paul Hastings

515 S Flower St
Los Angeles , CA 90071

Email: williamsullivan@paulhastings.com

Susie Yoo

Associate Paul Hastings

With corporations still reeling from the expansive ramifications of the Sarbanes-Oxley Act of 2002, another complication may be emerging for corporate officers under the act's Section 304 - a complication that could add substantially to the price defendants pay in securities litigation.

The Securities and Exchange Commission has long demanded the disgorgement of profits from securities fraud as a remedy in securities actions, but the amount disgorged almost always has been tied dir...

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