The Sarbanes-Oxley Act of 2002: What it means for business litigators

In July 2002, President Bush signed new corporate responsibility legislation that imposes significant new duties on accountants, audit committees, boards of directors, lawyers, and business executives. This much-publicized legislation, called the "Sarbanes-Oxley Act of 2002" (the "Act"), is primarily concerned with issues of disclosure, corporate. governance, and enhanced criminal penalties. The law has important implications for business litigators, particularly those involved in shareholder lawsuits and derivative actions. This article provides some summary insights into the litigation implications of the new legislation.