Wednesday, January 17, 2007 Because the Sarbanes-Oxley Act (SOX) is still fairly new, federal courts are just now being asked to decide what kinds of activities will be considered "protected" for purposes of triggering a whistleblower claim under the statute. A Michigan district court managed to duck the issue recently when it held that, even assuming the former employee had satisfied the "protected activity" requirement, he had failed to establish a causal connection between those activities and his termination. See Sussberg v. K-Mart Holding Corp., 2006 WL 3313766 (E.D. Mich. Nov. 17, 2006). SOX Whistleblower Protection Employees of publicly traded companies who believe they have been subjected to retaliation because they engaged in "protected" whistleblower activity may assert a claim under the Sarbanes-Oxley whistleblower provision. SOX prohibits employer retaliation against an employee who provides information or assists in an investigation regarding conduct that the employee reasonably believes constitutes a violation of federal laws and regulations relating to fraud against shareholders. 18 U.S.C. § 1514A(a)(1). The burden is on the employee to demonstrate that the protected activity was a contributing factor to the adverse employment action. Federal Court Rejects Fired Employee’s Sarbanes-Oxley "Whistleblower" Claim Labels: law, whistleblower Previous articles Jim Clark -- Clipped Wings at Shutterfly
|
Sponsored by:
Kumquat: Get the feedback you deserve
Learn more
FREE to Inside Sarbanes Oxley readers
|
About inside Sarbanes-Oxley inside Sarbanes Oxley is dedicated to finding the best sources of news and information on the changing landscape of Sarbanes Oxley and compliance. Whether you call it SOX, Sarbox, or the Sarbanes-Oxley Act of 2002, look no further than inside Sarbanes Oxley. More Copyright © 2004-2006, Inside Sarbanes-Oxley
|
Additional resources Try these recently updated resources: RSS Feed Interested in staying up-to-date on all the latest Sarbanes-Oxley news? Subscribe to the inside Sarbanes-Oxley RSS feed and get all of the latest news on SOX delivered directly to your feed reader. inside
Sarbanes-Oxley RSS Feed
|
