On Monday, June 28, 2010, the U.S. Supreme Court released its long-awaited decision in Free Enterprise Fund, et al. v. Public Company Accounting Oversight Board. I wrote a more detailed article about the case here. The decision was, well, anti-climactic. The entire decision can be read here, but in summary the Court decided that the President should have the ability to remove PCOAB Board members, who are appointed by the SEC, with or without cause. Previously, the President could remove Board members only for cause.
While the case raised important constitutional law issues, the decision will have little impact on the way the PCAOB operates and did not invalidate the Sarbanes-Oxley Act in any way. Both sides are claiming victory. As an interesting side note, the case was argued back in December 2009 on behalf of the U.S. government by Supreme Court nominee Elena Kagan, whose confirmation hearings started the same day that this decision was released.
