Spongetech Delivery Systems Inc (fka SPNGQ)

[loanranger]

lug,
Maybe these will help:
http://www.law.uc.edu/CCL/SOact/sec304.html

in conjunction with Section 107 on page 31 of this:
http://www.sec.gov/litigation/complaints/2010/comp21515.pdf

and this:
http://www.sec.gov/Archives/edgar/data/1201251/000114420408042150/v121013_8k.htm

As I understand it, "they can also force that corporate officer or any other corporate officer to give up their class B shares" based on the above.
1. They were given the first batch of Class B shares as compensation.
2. SOX says basically that the CEO and CFO must "reimburse the issuer" for any compensation received during the 12 months following the filing of reports that must be restated for noncompliance due to "misconduct".
3. The complaint shows that the company is being required to restate the reports covering the pertinent periods.