Defense Lawyers Call SEC’s Executive Clawback Suits Unconstitutional

The lawyers for the former ArthroCare executives blasted the SEC’s action as unconstitutional. Jay Pomerantz of Fenwick & West, who represents former CEO Baker, asserted that the SEC is relying on “a flawed interpretation of the Sarbanes-Oxley Act.” He added: “Such overreaching against an admittedly innocent person violates constitutional principles of fairness and due process.” Jason Lewis of Locke Lord, who represents former CFO Gluck also maintained that the SEC’s action “raises numerous constitutional and equitable concerns.” He stated: ” With its overreaching and broad interpretation of the Sarbanes-Oxley Act, the SEC is telling public companies and their officers that even being diligent and innocent of wrongdoing does not protect you from the SEC’s grasp….”

via Defense Lawyers Call SEC’s Executive Clawback Suits Unconstitutional — AmLaw Litigation Daily