SARBANES-OXLEY

Win for whistleblowers

, The National Law Journal

When the 4th U.S. Circuit Court of Appeals recently affirmed the Department of Labor's dismissal of a closely watched Sarbanes-Oxley whistleblower claim, it appeared at first blush to be the last nail in the coffin of a whistleblower provision that has been significantly narrowed and undermined in its mere six years of existence. A careful reading of the opinion in Welch v. Chao, however, reveals that it is a substantial victory for employees in that it resolves many ambiguities in favor of employees and rejects many of the defense arguments that are commonly asserted in Sarbanes-Oxley whistleblower cases.

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