[RinaseaofDs]

I'm hip deep into SOX right now. What a very interesting observation.

If you whack Rather, you probably have to give the market some notice of that first, don't you? SOX requires that if there is something that happens to your company that will materially effect the balance sheet, the company has to make the market aware of it within 48 hours of learning about this event.

This might very well be delayed further if that is what they are discussing.

In this case, what do you do first? Whack Rather and then tell the market that the news division is going to make a divot in earnings, or announce you plan to whack Rather, and then whack him 48 hours later?

[mabelkitty]

I think they would have to announce it first, then whack him.
However, upthread, it looks like huge volume trades right before the close tonight, so the SEC may have to investigate this, as well.

[maryz]

I'm hip deep into SOX right now. What a very interesting observation.

Hmmm . . . then shouldn't they have made the market aware that they were going to make a big splash with forged memos 48 hours ahead, too? ;-)

[CatoRenasci]

Since it would be a firing for cause, I would think they'd whack Rather and disclose virtually simultaneously. I doubt SOX would require a delay in firing to notify if you caught the CEO stealing: he'd be out the door (with a disclosure release) within a few hours of the board getting the evidence.

I think this thing got away from Rather and CBS as the Viacom corporate and securities lawyers had to sign-off, and when they saw the proposed strategy, they said "not with my law license".

[lemura]

The entire set of SEC rules & regs covering SOX 409 (relating to the revamped 8-K, including reg FD) can be read on-line here:

Sarbanes-Oxley

If the attorneys were involved, it could any number of items, including:

• Entry into a Material Definitive Agreement.

• Completion of Acquisition or Disposition of Assets.

  The SEC considered 48 hours, but went with 4 days instead. Reg FD is still 2 days, but probably wouldn't cover this event.