Lawsuit Over Anti-Fraud Law Dismissed
The Free Enterprise Fund filed a lawsuit in February 2006 alleging that the Public Company Accounting Oversight Board violates the Constitution's outline of separation of powers among three federal branches because its five members are not appointed by the president, cannot be removed by the president, and Congress does not control the board's budget. However, the lawsuit was rejected this week after U.S. District Court Judge James Robertson said that "the plaintiffs have brought a facial challenge to the PCAOB, presenting nothing but a hypothetical scenario of an overzealous or rogue PCAOB investigator."
The PCAOB said that it was pleased with the court's decision and planned to "continue to fulfill the mandate given to us by Congress to protect the interests of investors." A lobbyist for the Free Enterprise Fund vowed to continue the constitutionality of the PCAOB.
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