The Sarbanes-Oxley Act of 2002 (SOX) was enacted in response to accounting fraud scandals in the early 2000s, such as Enron, Tyco, and WorldCom. These scandals shook public and investor confidence and prompted the creation of new regulatory standards for the industry.
The Sarbanes-Oxley Act was intended to protect investors by improving the accuracy and reliability of corporate disclosures and increasing penalties for corporate wrongdoing.
New Regulations under the Sarbanes-Oxley Act
Also known as the “Public Company Accounting Reform and Investor Protection Act” (in the Senate) and “Corporate and Auditing Accountability and Responsibility Act” (in the House), the Sarbanes-Oxley Act:
- created the Public Company Accounting Oversight Board (PCAOB) to oversee the activities of the auditing profession;
- increased corporate responsibility by requiring additional corporate financial disclosures to ensure proper and accurate disclosure of all corporate activity;
- increased penalties for corporate wrongdoing and securities fraud;
- increased the resources & responsibilities of the Securities and Exchange Commission (SEC); and
- increased protections for securities fraud whistleblowers.
Report a Violation of the Sarbanes-Oxley Act
Speak with one of our securities attorneys by calling 1-800-254-9493 or by filling out the form to the right.
SEC Whistleblowers
Gibbs Mura encourages persons who know about possible securities violation to contact the firm. Under the SEC whistleblower laws promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act, whistleblowers may be receive a reward of up to 30 percent of the recovery for information leading to a successful enforcement action by the SEC and are protected from employer retaliation. If you believe that you have information about a securities violation, please contact us by filling out the form at the right.