BLAW 308 Lecture Notes - Lecture 22: Family And Medical Leave Act Of 1993, Sarbanes–Oxley Act, Regulation Fair Disclosure
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Audit committee can only do one job. Cant be on the board an employee and an audit committee. Cfo and ceo sign the financials and can go to jail/disgorge bonuses if its wrong. Harder for shareholders to bring suit against companies for fraud statements. You need to know what the fraud was before u bring action, if you don"t have it and you just go fishing (lets see if there was fraud we"re doing discovery, wrong) then it doesn"t work. You need to use specificity in your complaint. It has also dissuaded some shareholders from bringing valid suits. Means i am saying take care, be careful, something bad could happen. Not liable when there"s reasonable due diligence. To help someone commit a crime essentially. What the wall street says is already embedded in the stock price. If you exceed expectations than the street the stock price goes up and vice versa.
