Enacted in the wake of the Enron collapse and other corporate scandals stemming from the bursting of the dot-com bubble, the Sarbanes-Oxley act placed new regulatory and litigation burdens on U.S. public companies. Butler and Ribstein argue that the Sarbanes-Oxley Act, although a legislative disaster, is not beyond saving. The Sarbanes-Oxley Debacle examines the direct and indirect costs imposed by the recent legislation, and proposes reforms that could mitigate some of its worst effects. Among their proposals: applying Sarbanes-Oxley to larger corporations only; reducing the internal controls disclosure requirement; and prohibiting private lawsuits based on the Act.
Henry N. Butler, Professor, Chapman University; and Larry E. Ribstein, Professor, the University of Illinois College of Law (AEI Press 2006)