SOX Whistle-Blowing Rules Don't Apply Outside U.S.

Law360, New York (January 18, 2006, 12:00 AM EST) -- Employees at foreign subsidiaries of U.S. companies are not protected by the whistle-blowing provision of the Sarbanes-Oxley Act, according to a decision by the U.S. Court of Appeals for the First Circuit.

The decision in favor of medical device maker Boston Scientific Corp. affirmed an August 2004 ruling at the U.S. District Court for the District of Massachusetts that Sarbanes-Oxley’s whistle-blowing provision does not apply extraterritorially.

As a result, District Judge Rya W. Zobel found that Ruben Carnero, a former manager at the company’s Argentine facility,...
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