Category: Retaliation


Recent Decision Demonstrates Reach of Lawson; Extends SOX Whistleblower Protections to Employee of a Nonpublic Subsidiary of a Public Issuer

Posted on June 2nd, by and in Retaliation, SOX, Whistleblower. Comments Off on Recent Decision Demonstrates Reach of Lawson; Extends SOX Whistleblower Protections to Employee of a Nonpublic Subsidiary of a Public Issuer

We recently blogged about the U.S. Supreme Court’s decision in Lawson v. FMR LLC, 571 S. Ct. __, 188 L. Ed. 2d 158 (Mar. 4, 2014), which held that the whistleblower protections in section 1514A applied not only to the direct employees of public companies, but also to employees of private contractors and subcontractors serving public companies. See “Lawson and Doral Expand Whistleblower Protections,” SECurities Law Perspectives (Apr. 2, 2014). Taking the lead from Lawson and more recent decisions from the Department of Labor’s Administrative Review Board (“ARB”), the U.S. District Court for the Eastern District of Pennsylvania has ruled that an employee of a nonpublic subsidiary of a public issuer could proceed with his retaliation claims against the company. Wiest v. Lynch, __ F. Supp. 2d __, Civil Action No. 10-3288, 2014 WL 1490250, at *18–23 (E.D. Pa. Apr. … Read More »


Lawson and Doral Expand Whistleblower Protections

Posted on April 2nd, by and in Retaliation, SOX, Whistleblower. Comments Off on Lawson and Doral Expand Whistleblower Protections

Two recent decisions interpreting the Sarbanes-Oxley Act have significantly expanded the protections available for federal whistleblowers and increase the potential liability for public companies and private companies that contract for public companies.

In Lawson v. FMR LLC, 571 S. Ct. __, 188 L. Ed. 2d 158 (Mar. 4, 2014), the U.S. Supreme Court held that SOX protects from retaliation not only the direct employees of public companies, but also employees of private contractors and subcontractors serving public companies.  At issue in Lawson was the scope of the protected class in section 1514A of the statute:

No [public] company … or any officer, employee, contractor, subcontractor, or agent of such company, may discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee in the terms and conditions of employment because of any lawful act done by the … Read More »




From the Blog:

SEC Announces Enforcement Division Cyber Specialty Unit

On September 25, 2017, the Securities and Exchange Commission announced the creation of an Enforcement Division “Cyber Unit” that will focus on cyber-related violative...

Split Second Circuit Affirms Insider Trading Conviction While Rejecting Newman’s “Meaningfully Close Personal Relationship” Requirement

On August 23, 2017, the United States Court of Appeals for the Second Circuit affirmed an insider trading conviction against a portfolio manager, and...

7th Circuit Affirms 1st Conviction For Spoofing

Spoofing is not going away after all. Last week, the U.S. Court of Appeals for the Seventh Circuit unanimously upheld the first-ever criminal conviction...