SEC Raises Stakes On Restatements

Consistent with Chairman Mary Shapiro's promise to reclaim the image of the U.S. Securities and Exchange Commission ("SEC") as "an unrelenting law enforcement agency," last week the SEC raised the stakes for CEOs and CFOs of public companies when it asked a federal court to require a CEO to return his bonus and profits from sales of company stock because his company had restated its financial statements. On July 22, 2009, the SEC requested that an Arizona district court order Maynard L. Jenkins, former CEO of CSK Auto Corporation ("CSK"), to reimburse the company $4 million that he received in bonuses and stock sale profits during the time the company filed financial statements containing misstatements.