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Friday, December 12, 2003

Scrushy Will Seek to Overturn Certification Requirements of Sarbanes-Oxley

The AP reported on Wednesday that former HealthSouth CEO Richard Scrushy, recently charged in an 85-count indictment by the U.S. Attorney's Office for the Northern District of Alabama for alleged conduct related to accounting fraud at the company, will challenge the constitutionality of the certification requirements of Sarbanes-Oxley, 18 U.S.C. 1350. Counts 48-50 of the Indictment charge that Scrushy certified, or attempted to get others to certify, certain periodic reports filed with the SEC while knowing that the reports "did not fairly present. in all material respects, the financial condition and results of operations of HealthSouth...." Scrushy is believed to be the first person to be prosecuted under Sarbanes-Oxley.

Abbe Lowell, who recently agreed to join Thomas V. Sjoblom, his partner at Chadbourne & Parke LLP, "in this historic endeavor of service to [Scrushy], one which will prove to be of unprecedented magnitude" (for more on the historic endeavor and unprecedented magnitude, see this post from the hardly obscure Corp Law Blog), reportedly told the Court that the parties were in agreement that the trial needed to be moved from the current Feb. 2 trial date, preferably to August 2004, and that he needed time to study the 1 million documents the government was prepared to produce to his client.

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Listed below are links to weblogs that reference Scrushy Will Seek to Overturn Certification Requirements of Sarbanes-Oxley:

» Scrushy to SOX: "You're Illegal!" from Corp Law Blog
In Corp Law Blog, I write about corporate issues that interest me. I'm really not that interested in Richard M. Scrushy and his legal troubles. So why am I always writing about him? Some characters are so big they just... [Read More]

» Healthsouth's Scrushy the Challenge SOX from ProfessorBainbridge.com
Richard Scrushy of Healthsouth infamy* apparently intends to challenge the validity of the provision of the Sarbanes-Oxley act that requires corporate CEOs and CFOs to certify periodic disclosure reports filed with the SEC. According to Securities Liti... [Read More]

» How to get your CEO thrown into jail (Sarbanes Oxley) from Thinking Out Loud: Thought Leadership from an Enterprise Architect
The original intent of Sarbanes Oxley is about accountability of executives but has morphed into something else within many enterprises. Is Sarbanes Oxley really the Expensive Consultant Full Employment Assurance Act?... [Read More]

   
 
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