Category: Section 806

Whistle

Wells Fargo owes $5.4 Million for Whistleblower Retaliation

OSHA recently awarded a whistleblower $5.4 million in damages against his former employer, Wells Fargo. This award arises under the Sarbanes-Oxley Act (SOX), which contains a strong anti-retaliation provision. In this case, the whistleblower was a bank manager who was terminated after reporting separate incidents of bank, mail and wire fraud by his subordinate bankers….




The Same Action Defense Under SOX is a Daunting Burden

Whistleblower retaliation claims under the Sarbanes-Oxley Act (SOX) are governed by a two stage burden-shifting framework. In the first step the whistleblower must prove by a preponderance of the evidence that her protected activity was a contributing factor in the adverse action taken against her. The second step is an affirmative defense, commonly referred to…




In-House Counsel as Whistleblowers Under the Sarbanes-Oxley Act

I recently published a post on in-house counsel who turn whistleblower, which is available here. This post is a deeper dive into SOX retaliation claims on behalf of in-house counsel. SOX specifically contemplates protection of attorney whistleblowers. Generally, Section 806 of SOX prohibits a publicly traded company, or any contractor or agent of such company,…




8th Circuit Adopts Sylvester Standard for Protected Activity Under SOX

In June 2016 the Eighth Circuit became the latest court to adopt the more lenient and Whistleblower friendly standard for protected activity under the anti-retaliation provision of the Sarbanes-Oxley Act (SOX). In Beacom v. Oracle America, Inc., 825 F.3d 376 (8th Cir. 2016) the court addressed a case brought by a former Vice President of…




“Put Up or Shut Up”: 3rd Circuit Affirms Dismissal of SOX Whistleblower’s Claim

In an interesting turn of phrase that plaintiff’s attorneys will certainly get sick of reading as a rote boilerplate “Standard” in defense motions for summary judgment, the Third Circuit affirmed the dismissal of a whistleblower’s lawsuit under Sarbanes-Oxley’s anti-retaliation provisions. The court stated that the summary judgment standard under Rule 56 of the Federal Rules…




OSHA Awards Whistleblower $1.9 Million in Section 806 Retaliation Case

OSHA recently awarded a former CFO more than $1.9 million under the Sarbanes-Oxley Act (SOX) anti-retaliation provision.  The anonymous CFO received the award after OSHA’s finding that his former employer, Clean Diesel Technologies, Inc. (the Company), violated Section 806 of SOX by discharging the CFO in retaliation for his warning the board of directors about…