THE MAGAZINE

Elswhere in the Courts: Whistleblowers

A federal appeals court ruled that an employer, Stewart Enterprises, did not retaliate against three employees when it laid them off during a reduction in force. The employees filed a complaint with the U.S. Department of labor arguing that they were let go because they complained about faulty accounting and computer procedures and that the terminations were a violation of the whistleblower provisions of Sarbanes-Oxley. The court found that while the relevant procedures were not stellar business practices, they were not illegal and, therefore, not covered by Sarbanes-Oxley.

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