SOX Section 304 Clawback Suit Against Former Executives Not Charged with Personal Misconduct Survives Motion to Dismiss

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On November 13, 2012, a federal district court in Austin, Texas, denied a motion to dismiss in the Securities and Exchange Commission's (SEC) Sarbanes-Oxley Act (SOX) Section 304 clawback suit against two former executives of a corporation. The suit, Securities and Exchange Commission v. Michael A. Baker and Michael T. Gluk (Case No. A-12-CA-285-SS), was filed by the SEC in April to attempt to recover bonuses and stock sale profits received by the former CEO of the corporation, Michael A. Baker, and the former CFO, Michael T. Gluk, after the corporation filed false financial statements due to accounting fraud.

 

Topics:  Clawbacks, Sarbanes-Oxley, SEC, Section 304

Published In: Business Torts Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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