by Allen B. Roberts, Frank C. Morris, Jr., Stuart M. Gerson, and Michael J. Slocum
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) extended Sarbanes-Oxley’s whistleblower protection provision beyond employees of publicly-traded companies to reach the employees of their privately-held subsidiaries as well. Reasoning that this extension was “a clarification of Congress’s intent with respect to the Sarbanes-Oxley whistleblower provision,” a federal court held that the extension applies retroactively to cover whistleblowers whose claims arise from events predating the Dodd-Frank amendments. Leshinsky v. Telvent GIT, S.A., No. 10-4511, (S.D.N.Y. July 9, 2012).
Although expanding employers’ exposure to retaliation claims at the margins, the practical impact of the Leshinsky decision will likely be minimal given the 180-day limitations period applicable to whistleblower claims under Sarbanes-Oxley. In other words, the decision should not revive claims by employees of privately-held subsidiaries who have not already filed and are therefore beyond the limitations period.
Plaintiff Claimed Retaliation for Objecting to Proposed Fraud in Obtaining a...
