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Appellate Law

: North Carolina Appellate Blog

4th Circuit Rules Against Employee In SOX Whistleblower Suit

By Sean E. Andrussier

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This past week (Dec. 3) the Fourth Circuit, in Platone v. U.S. Dep't of Labor, concluded that the plaintiff's allegations to company management didn't qualify for whistleblower protection under the Sarbanes-Oxley Act (SOX), 18 U.S.C. § 1514A, because her allegations didn't definitively and specifically relate to fraud against shareholders. An ALJ had ruled for the plaintiff, but on administrative appeal that decision was reversed, concluding that the employee simply alerted company management to internal billing discrepancies. The Fourth Circuit affirmed, holding "that a complainant must alert management to more than the fact that the company?s near-term profits were affected by billing discrepancies" to qualify for SOX whistleblower protection.

Full post as published by North Carolina Appellate Blog on December 07, 2008 (boomark / email).

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