Ruling Scales Down Whistleblower Claims

Law360, New York (November 1, 2006, 12:00 AM EST) -- The number of whistleblower lawsuits filed under the Sarbanes-Oxley Act could decline after the Labor Department narrowed its scope in an administrative decision, experts say.

The Administrative Review Board, which is the appellate body of the U.S. Department of Labor, has decided to narrow the scope of SOX so that it no longer provides whistleblower safeguards to all employee complaints over how public companies spend their money.

Only complaints that deal with issues that have an adverse impact on shareholder and investor value can be brought...
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