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Article: The Ninth Circuit Allows Corporate Counsel To Bring SOX Whistleblower Claims; Belief That Investigation Required Satisfies The Statute.(International Game Technology Inc. v. Van Asdalev)
- Article from:
- Mondaq Business Briefing
- Article date:
- September 13, 2009
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In its first decision interpreting the whistleblower provisions of SOX, the Ninth Circuit broadened the scope of protected conduct. Although other circuits have required a would-be whistleblower to prove she had a reasonable belief that the law had been violated, the Ninth Circuit held that the whistleblower need only believe an investigation is required. Moreover, the Ninth Circuit held that the fact that the whistleblower was an in-house attorney—who may need to disclose privileged communications to make her case—did not preclude such claims.
Employers in the Ninth Circuit should act with care when disciplining or terminating an employee who has ...