Supreme Court to Rule on Constitutionality of SOX's Public Company Accounting Oversight Board
By Peter M. Stone, Edward Han and Stacy E. Wiesbrock
On May 18, 2009, the United States Supreme Court granted certiorari in Free Enterprise Fund and Beckstead and Watts, LLP v. Public Company Accounting Oversight Board, et al., 537 F.3d 667 (D.C. Cir. 2008). This case seeks to resolve the constitutionality of the Public Company Accounting Oversight Board (PCAOB) created as part of the Sarbanes-Oxley Act of 2002 (SOX). Free Enterprise Fund raises two constitutional questions: (1) whether the provisions of SOX creating PCAOB violate the Constitutions separation of powers; and (2) whether it violates the Appointments Clause.