Is SOX unconstitutional?
That's been the question raised by the Free Enterprise Fund. Last year it launched a constitutional challenge, led by Kenneth Starr of Whitewater and Monica Lewinsky fame, to the Public Company Accounting Oversight Board.
It's something I have explored here, here and here.
US District Court Judge James Robertson has rejected the lawsuit, saying it presents "nothing but an hypothetical scenario of an overzealous or rogue PCAOB investigator". You can read more about it in BusinessWeek.
As expected the Free Enterprise Fund says it's not giving up and that it plans to appeal.
"The Sarbanes-Oxley Act is onerous and burdensome," says Starr. "It is also deeply unconstitutional. With all respect to the District Court, we will continue to press our important cause in the Court of Appeals and the Supreme Court."
That leaves plenty of of time for more arguments, more rebuttals and more battles.
no comment untill now