Private Employers And Whistleblowing Post-Lawson

Law360, New York (June 06, 2014, 10:58 AM ET) -- Congress enacted the Sarbanes-Oxley Act in the wake of accounting scandals at Enron Corp. and Worldcom Inc. to “safeguard investors in public companies and restore trust in the financial markets.” SOX mandates strict reforms to improve financial disclosures and prevent fraudulent accounting practices. Section 806 prohibits employers from retaliating against whistleblowers who call attention to corporate fraud or securities violations.

Because SOX targets financial misbehavior at public companies, most privately held companies assumed, until recently, they had no reason to worry about SOX. The U.S. Supreme Court...
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