The D.C. Circuit on Friday upheld the constitutionality of the Public Company Accounting Oversight Board, the centerpiece of the Sarbanes-Oxley Act passed after the Enron and WorldCom scandals. The panel voted 2-1 in rejecting arguments that the PCAOB violates separation of powers and the Constitution's appointments clause because it is supervised by the SEC and not the president. The dissenting judge called the case the most important separation-of-powers litigation in the past 20 years.
Divided D.C. Circuit Rejects Challenge to SOX Oversight Board
August 25, 2008