Marketplace   Menu Guide   Complete Pages      
butler eagle
Site last updated: Wednesday, December 17, 2014 Bookmark our site!
Local PennsylvaniaNationalInternationalNews Extras  
Published: March 3, 2014 print this article Print save this article Save email this article Email ENLARGE TEXT increase font decrease font

High court backs wide whistleblower protection



WASHINGTON — The Supreme Court ruled that whistleblower protections in a federal law passed in response to the Enron financial scandal apply broadly to employees of publicly traded companies and contractors hired by the companies.
The justices voted 6-3 in favor of two former employees of companies that administer the Fidelity family of mutual funds. The workers claimed they faced retaliation after they reported allegations of fraud affecting Fidelity funds.
The case involved the reach of a provision of the Sarbanes-Oxley Act, passed in 2002 in response to the Enron scandal, which protects whistleblower activity. The measure was intended to protect people who expose the kind of corporate misdeeds that arose at Enron.
Justice Ruth Bader Ginsburg said in her opinion that the law “shelters employees of private contractors that serve public companies, just as it shelters the public companies’ own employees.”
Justices Sonia Sotomayor, Samuel Alito and Anthony Kennedy dissented.
Jackie Hosang Lawson and Jonathan M. Zang complained of retaliation for whistle-blower activities from the privately-held parent company and subsidiary companies that run the Fidelity family of mutual funds.
Lawson resigned after complaining of harassment, and Zang was dismissed, and they both sued. A lower court refused to throw out their complaints, but that decision was overturned. The federal appeals court in Boston said only people who work for public companies are protected by the Sarbanes Oxley Act.
The case is Lawson v FMR, 12-3.





Back
Comments
Order Photos!
 
MORE NEWS HEADLINES
arrow With no funds, downtown group lays off manager
arrow 10 charged in PennDOT overbilling, kickback probe
arrow Littlest angels
arrow Stepfather facing trial in fraud case
 
MOST READ ARTICLES
arrow Butler Twp puts off vote on shopping complex
arrow Parents make plea to keep schools
arrow Police reports
arrow Congressman Kelly to be part owner of BlueSox