SARBANES-OXLEY IS UNCONSTITUTIONAL... FREE ENTERPRISE FUND SUES

This is a worthy effort. Prof. Stephen Bainbridge covers the story over at TCS Daily:

Peekaboo, the Constitution Doesn't See You

The Free Enterprise Fund, an activist think tank, has filed a law suit claiming that the Public Company Accounting Oversight Board (PCAOB, nicknamed "Peekaboo") created by the Sarbanes-Oxley Act is unconstitutional. (Read the complaint.) The gist of the complaint is that the PCAOB is vested with extensive governmental functions and powers, including a quasi-law enforcement investigatory power and a quasi-judicial power to impose substantial fines for violations of its rules.

The Fund claims that the PCAOB thus violates a number of constitutional provisions, most notably the appointments clause of the US Constitution. The potential constitutional problem is that members of the PCAOB are appointed not by the President but by the SEC. (full post)