Federal Courts Are Adopting the Administrative Review Board's Broad Interpretation of Sarbanes-Oxley Protected Conduct

Scope of Sarbanes-Oxley Protected Whistleblowing

Nearly three years ago, the Department of Labor’s Administrative Review Board issued its seminal decision in Sylvester v. Parexel Int’l broadly construing Sarbanes-Oxley protected conduct and expressly rejecting the prior ARB’s erroneous decision in Platone, which created several barriers for Sarbanes-Oxley whistleblowers that are contrary to the plain meaning and intent of the statute. The business community has tried hard to persuade federal courts not to adopt Sylvester, but that effort has been unsuccessful.

In an article titled Doral Ruling Shows SOX’s Teeth Getting Sharper, Law 360 reports about a district court decision in Stewart v Doral Financial Corp. deferring to the ARB’s interpretation of Sarbanes-Oxley protected conduct. The article quotes whistleblower lawyer Jason Zuckerman’s observation that “[t]he ARB’s Sylvester decision is fast becoming the law of the land and SOX is now a potent remedy for corporate whistleblowers.” Indeed, last year two circuit court decisions expressly adopted Sylvester. See Weist v. Lynch, 710 F.3d 121, 129 (3rd Cir. 2013); Lockheed Martin Corp. v. Administrative Review Bd., 717 F.3d 1121, 1129 (10th Cir. 2013). Stewart offers a compelling analysis of Chevron deference to ARB decisions and suggests that a majority of federal court decisions construing Sarbanes-Oxley’s whistleblower protection provision will likely defer to Sylvester.

Guide to SOX Whistleblower Law

On the fifteenth anniversary of SOX, leading whistleblower law firm Zuckerman Law released a free guide to the SOX whistleblower protection law: “Sarbanes-Oxley Whistleblower Protection: Robust Protection for Corporate Whistleblowers.” The guide summarizes SOX whistleblower protections and offers concrete tips for corporate whistleblowers based on lessons learned during years of litigating SOX whistleblower cases.

The goal of the guide is to arm corporate whistleblowers with the knowledge to effectively combat whistleblower retaliation, avoid the pitfalls that can weaken a SOX whistleblower case, and formulate an effective strategy to obtain the maximum recovery.

Download our free guide Sarbanes-Oxley Whistleblower Protection: Robust Protection for Corporate Whistleblowers

Experienced Sarbanes-Oxley Whistleblower Attorneys

The whistleblower lawyers at Zuckerman Law have substantial experience litigating Sarbanes Oxley whistleblower retaliation claims and have achieved substantial recoveries for officers, executives, accountants, auditors, and other senior professionals. To learn more about corporate whistleblower protections, see our Sarbanes-Oxley Whistleblower Protection FAQ. Click here to read client testimonials about the firm’s work in SOX whistleblower matters and other employment-related litigation.

To schedule a free preliminary consultation, click here or call us at 202-262-8959.

Best SEC Whistleblower Lawyers & Attorneys

Leading whistleblower law firm Zuckerman Law has written extensively about whistleblower protections and is quoted frequently in the media on this topic. A sample of those blog posts and articles appears below: