15 U.S.C. § 7243
Section 7243 · Forfeiture of certain bonuses and profits
This is § 304 of the Sarbanes-Oxley Act of 2002
Amended 1 time on record
Applied in 35 court decisions — leading case Pirelli Armstrong Tire Corporation Retiree Medical Benefits Trust v. Raines (2008)
Most recently applied in In re: SS Body Armor I Inc v. (June 2020)
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
If an issuer is required to prepare an accounting restatement due to the material noncompliance of the issuer, as a result of misconduct, with any financial reporting requirement under the securities laws, the chief executive officer and chief financial officer of the issuer shall reimburse the issuer for—
(1) any bonus or other incentive-based or equity-based compensation received by that person from the issuer during the 12-month period following the first public issuance or filing with the Commission (whichever first occurs) of the financial document embodying such financial reporting requirement; and
(2) any profits realized from the sale of securities of the issuer during that 12-month period.
The Commission may exempt any person from the application of subsection (a) of this section, as it deems necessary and appropriate.