In an article about the scope of Sarbanes-Oxley protected conduct, Law360 quotes Jason Zuckerman about a trend of broader protection for corporate whistleblowers. The article states in part:
Employment attorneys told Law360 that the ARB’s decision was important because it held that shareholder fraud was not required to prove the existence of protected activity and that allegations of mail or wire fraud were sufficient . . . . Jason Zuckerman, . . . said the broad reading was just what Congress intended. “Some federal judges and ALJs ignored the plain meaning of the statute and held that protected conduct is limited solely to disclosures concerning shareholder fraud,” Zuckerman said.
In addition to its implications for the scope of SOX-protected activity, the Brown case is significant when viewed in conjunction with other recent ARB decisions, including a March 31 ruling in Johnson v. Siemens Building Technologies Inc., which said SOX protects employees of subsidiaries of publicly traded companies, according to Zuckerman.
The ARB under former Secretary of Labor Elaine Chao weakened SOX by creating loopholes that ran counter to congressional intent, but that’s no longer the case, Zuckerman said. Now, the ARB is “willing to apply the plain meaning of the statute and to construe SOX in light of its remedial purpose,” Zuckerman said.
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The whistleblower lawyers at Zuckerman Law have substantial experience litigating Sarbanes Oxley whistleblower retaliation claims. To learn more about corporate whistleblower protections, see our Sarbanes-Oxley Whistleblower Protection FAQ.
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