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Client Alert

Increased Liability for Audit Committee Financial Experts?

June 01, 2003

Chad Conwell

After proposing rules under the Sarbanes-Oxley Act of 2002 requiring a company to disclose whether or not a financial expert serves on its audit committee, the Securities and Exchange Commission faced a flurry of comments objecting to the disclosure on the ground that it could increase the personal liability of the designated financial expert.

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