TheCorporateCounsel.net

While we’re on the topic of whistleblowers, this CLS Blue Sky blog from Ropes & Gray discusses the recent SCOTUS decision in Murray v. UBS Securities, LLC , in which the Court overturned a 2nd Circuit decision and held that “Sarbanes-Oxley does not include a retaliatory intent element, and that such requirement would be inconsistent with the statute’s burden-shifting framework.” This excerpt from the blog discusses its potential impact on whistleblower retaliation claims:

The Court’s opinion in Murray lowers the bar for plaintiffs asserting claims of whistleblower retaliation under Sarbanes-Oxley, which could embolden employees and change the settlement calculus in those cases. Proving the employer’s intent is often difficult, particularly when a number of factors and personnel can influence the termination decision. The more lenient “contributing factor” standard may increase litigation risk and reduce the likelihood of an early resolution.

The blog also says that the Murray decision highlights the fact that whistleblower protection laws encompass not only terminations but other unfavorable personnel actions as well, regardless of retaliatory intent.

– John Jenkins