Whistleblower Case Invokes Employment Rule Exception

Many have noted the unanticipated consequences of Sarbanes Oxley's (SOX) whistleblower protection. One significant question has been how, in light of the statute's remedial nature but its focus on remedying securities fraud, courts should construe its definition of protected activity. In particular, courts (and the Department of Labor administrative law judges who generally hear these cases at the outset) have struggled with SOX's requirement that to be a protected whistleblower, the employee must complain about conduct that he or she 'reasonably believes constitutes a violation of ' any rule or regulation of the [SEC], or any provision of Federal law relating to fraud against shareholders' (<i>see</i> 18 U.S.C. ' 1514A).

19 minute read March 29, 2006 at 01:18 PM
By
Philip M. Berkowitz
Whistleblower Case Invokes Employment Rule Exception

Many have noted the unanticipated consequences of Sarbanes Oxley's (SOX) whistleblower protection. One significant question has been how, in light of the statute's remedial nature but its focus on remedying securities fraud, courts should construe its definition of protected activity.

This premium content is locked for LawJournalNewsletters subscribers only

ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LawJournalNewsletters

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts
Subscribe Now

Already have an account? Sign In Now

For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.

NOT FOR REPRINT

© 2026 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Continue Reading

How Courts Interpret and Apply the Interplay Between the Bankruptcy Code and Medicare Program Act

The combination of increasing operating costs and uncertain government reimbursement funding continues to place health care providers under financial pressure, and in many cases, financial distress. Given the importance of Medicare/Medicaid funding of claims under provider agreements with the federal government, how courts interpret and apply the interplay between the Bankruptcy Code and Medicare Program Act determines the disposition of hundreds of millions of dollars of claims for reimbursement that support the health care system.

April 30, 2026

AI Transparency: Clear Explanations Matter More Than Disclosure

As AI becomes embedded in everyday business and legal operations, organizations are confronting a new expectation: simply disclosing AI use is no longer enough. A critical shift is taking place in the legal industry: transparency is no longer just about disclosure; it’s about comprehension.

April 30, 2026