Although many attorneys representing plaintiffs with retaliation claims are still not familiar with the whistleblower protections afforded by the Sarbanes-Oxley Act of 2002 (SOX), whistleblower claims under it continue to be on the rise. Plaintiffs attorneys are catching on quickly, especially given the trend toward broadening the scope of whistleblower protections under SOX in favor of employees. In light of recent case law, which highlights the loose definition of what constitutes “protected activity” under SOX, corporate employers and defense attorneys should be on guard and tread carefully when it comes to employee complaints about corporate fraud and wrongdoing.
SOX was enacted in response to corporate scandals like Enron that undermined investor confidence and exposed a need for more comprehensive corporate regulations. Notably, SOX contains protections for employees who “blow the whistle,” i.e., report suspected violations of corporate fraud and wrongdoing.
