Sarbanes-Oxley Retaliation Update

Following the infamous Enron scandal, Congress enacted the Sarbanes-Oxley Act of 2002. Among its other regulatory provisions, the statute includes retaliation protection for employees of pubic companies that engage in whistleblower activities associated with the investigation of corporate fraud.  In Lawson v. FMR LLC, the U.S. Supreme Court recently affirmed that these employee protections extend not only to employees of public companies, but also to employees of contractors or subcontractors of public companies.  This broader interpretation of Sarbanes-Oxley’s protected class cements retaliation protection for employees of affiliated contractors such as accountants, lawyers, financial service providers or other consultants who report possible fraud within pubic companies