Ninth Circuit Finds No Private Right of Action Under Section 304 of the Sarbanes-Oxley Act

On December 11, 2008, the United States Court of Appeals for the Ninth Circuit issued its decision in In re Digimarc Corporation Derivative Litigation. (1) The decision addresses the question of whether Section 304 of the Sarbanes-Oxley Act, (2) provides a private right of action under which shareholders may bring suit. The Court of Appeals found that Section 304 does not provide a private right of action. (3)