The Sarbanes-Oxley Act prohibits publicly traded companies from discriminating against employees who make whistle-blowing complaints about alleged violations of security laws. To sustain a lawsuit for damages under the Act, the Act requires the whistle-blower to introduce proof that his or her whistle-blowing activity had been a “contributing factor” in the employer’s decision to take adverse action against the employee. In Murray v. UBS Securities, decided by the Court on February 8, 2024, the Court held that the employee’s “contributing factor” proof did not have to include proof of any hostility, anger, or retaliation by the employer against the employee in order for the employee to prevail in his or her lawsuit.
COMMENT: The Court’s unanimous interpretation of the Sarbanes-Oxley Act was entirely consistent with both the text of that Act, and its manifest purpose to encourage employees of publicly traded companies to report any suspicions they may have of securities law violations to someone. The Court’s ruling was sound.
RECENT RULINGS 