The Ninth Circuit U.S. Court of Appeals reinstated a Sarbanes-Oxley case and made some helpful comments about SOX. In a decision issued last month, the Court reversed a dismissal by a Nevada magistrate judge and sent the case back so Lena and Shawn Van Asdale can have their day in court. "The success, or failure, of the Van Asdales’ lawsuit does not depend on their ability to show any actual fraud, only that they reasonably believed that fraud had occurred," the Court says. Here, here. "An employee need not cite a code section he believes was violated," the opinion adds. The case is Van Asdale v. Int’l Game Technology, ___ F.3d. ___, No. 07-16597 (9th Cir. Aug. 13, 2009).
What Federal laws protect whistleblowers who report corporate fraud?
In 2002, Congress passed the historic Sarbanes-Oxley Act which protects employees of publicly traded companies who report violations of Securities and Exchange Commission regulations or any provision of federal law relating to fraud against the shareholders.
Who is protected?
Employees of publicly traded companies and contractors,…