By targeting the PCAOB's ''massive unchecked powers,'' a lawsuit also poses a constitutional challenge to Sarbanes-Oxley.
By challenging the constitutionality of the Public Company Accounting Oversight Board, plaintiffs in a lawsuit filed last week believe that they can spur the courts and Congress to undo the entire Sarbanes-Oxley Act.
While many federal laws have a "severability" provision that enables Congress to change a section of a law without dismantling it entirely, Sarbanes-Oxley doesn't, according to Michael Carvin, a lawyer with Jones Day in Washington and lead attorney for the plaintiffs. A successful lawsuit might prompt a "remedy broader than fixing the board," he adds, and perhaps "force Congress to face the issue" of passing legislation to overhaul Sarbox as a whole.
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