News & Analysis as of

SEC Charges Executive Officers with Fraud and Violations of Sarbanes-Oxley

On July 30, 2014, the Securities and Exchange Commission (the “SEC”) announced enforcement actions against Marc Sherman and Edward Cummings, CEO and former CFO, respectively, of QSGI, Inc., a publicly traded computer...more

Federal Court in District of Columbia Dismisses Whistleblower Claims of Former Fannie Mae Employee

On August 25, 2014, the District Court for the District of Columbia dismissed a claim brought by a former employee of Fannie Mae alleging violations of the anti-retaliation provisions of the Sarbanes-Oxley Act and the...more

SEC Charges CEO and Former CFO With Violation of Sarbanes-Oxley

On July 30, the Securities and Exchange Commission charged computer equipment company QSGI Inc’s CEO, Marc Sherman, and former CFO, Edward L. Cummings, for misrepresenting to external auditors and the investing public the...more

SOX Claim Dismissed: Rejection of IP Assignment Clause Not Protected Activity

The U.S. District Court for the Northern District of Illinois recently granted a Rule 12(b)(6) motion to dismiss a SOX whistleblower retaliation claim, concluding that the plaintiff did not engage in protected activity. Fuqua...more

SEC Gives Itself the Home Court Advantage in an Accounting Fraud / Internal Controls Action Against a Corporate CEO

An otherwise mundane SEC announcement on July 30, 2014 of an enforcement action charging a public company CEO and CFO with accounting fraud and internal controls violations is significant because the SEC is proceeding against...more

The Network News

Fraud Index Released-Startling Findings - A survey of more than 1,400 organizations worldwide revealed startling 4th quarter results on fraud trends for 2013. The Fraud Reporting Percentage (FRP), which measures fraud...more

E.D. Pennsylvania Limits Supreme Court’s SOX Whistleblower Decision

In a case of first impression, the U.S. District Court for the Eastern District of Pennsylvania ruled that the U.S. Supreme Court’s holding in Lawson v. FMR LLC, 134 S. Ct. 1158 (2014)—that the whistleblower protection...more

Careful Measures May Be Needed to Protect Privileged Internal Investigative Materials

In March, the U.S. District Court of the District of Columbia ordered defense contractors Kellogg Brown and Root Inc. and Halliburton’s (“KBR”) legal department to produce internal investigative reports that KBR contended...more

The U.S. Whistleblower Laws You’ve Never Heard About

By now, you have probably heard about the False Claims Act, the Dodd-Frank Act and the Sarbanes-Oxley Act of 2002. Depending on your field, you may be aware of the Internal Revenue Service (IRS) Whistleblower Law, which gives...more

Recent Charges Against China-Based Companies Demonstrate SEC’s Efforts to Bring More Financial Fraud Cases

SEC Chair Mary Jo White and Enforcement Director Andrew Ceresney have repeatedly said that financial fraud would be a priority of the SEC’s enforcement program. Two recent cases involving companies with China-based operations...more

District Court Denies Summary Judgment On Internal Audit/SOX Administrator’s Whistleblower Claim

In denying a bank’s bid for summary judgment on an Internal Audit and SOX Administrator’s SOX whistleblower claim, the U.S. District Court for the Western District of Washington highlighted the present conflict on the...more

The Relationship Between Sarbanes-Oxley And FCPA Compliance

Ten years ago, Sarbanes-Oxley was the focus of compliance and corporate governance reform. Sarbanes-Oxley was enacted in response to major corporate scandals involving financial reporting fraud and accounting...more

Fifth Circuit’s Recent Dodd-Frank Whistleblower Ruling May Benefit Employers

In Brief - Decision contradicts regulatory guidance from the Securities and Exchange Commission and raises the prospect of employers facing fewer frivolous anti-retaliation lawsuits....more

Tenth Circuit Broadens Whistleblower Protection Under SOX

In a recent decision, the United States Court of Appeals for the Tenth Circuit broadened the types of claims that may be recognized under the anti-retaliation provisions of the Sarbanes-Oxley Act. Lockheed Martin Corp. v....more

Tenth Circuit Adopts a Broad View of What Constitutes Protected Activity Under Sarbanes-Oxley

In a recent decision, the Tenth Circuit approved the Department Of Labor Administrative Review Board’s broad view that Sarbanes-Oxley protects employees of publicly traded companies who blow the whistle on numerous types of...more

Employment Law -- Jun 19, 2013

Exempt or Nonexempt, That is The Question - Employers who believe in multitasking could be facing unpaid overtime suits from managers after the California Court of Appeal ruled that a grocery store manager could not...more

Law360 Quotes Lloyd Chinn on Tenth Circuit’s Broad Interpretation of SOX Protected Activity

In a recent Law360 article (subscription required), Lloyd Chinn, Co-head of Proskauer’s Whistleblower & Retaliation Group, commented on the Tenth Circuit Court of Appeal’s recent decision in Lockheed Martin Corp. v. Dep’t of...more

White Collar Watch - April 2013

In This Issue: - Third Circuit Panel Liberalizes “Protected Activity” Immunity for Employees Claiming Whistleblower Status - Doing Time: A Requirement for White Collar Crime? - Casting a Smaller Net:...more

District Court Widens Split On Whether Complaints Of Alleged Future Misconduct Are Protected

The U.S. District Court for the Central District of California ruled that a SOX whistleblower complaint survived a Rule 12(b)(6) challenge on “reasonable belief” grounds and found that complaints of potential future...more

Between Mortar and Pestle: SEC Pressure Grinds Auditors Against PRC State Interests

Comity among US and Chinese regulators may top this New Year’s wish list for United States-listed companies in China. After a failed six-month pursuit of a diplomatic solution, the SEC revived its federal court petition to...more

District Court Requires SOX Plaintiff To Assert Shareholder Fraud, Consistent with Statute’s Purpose

The U.S. District Court for the District of North Carolina recently dismissed a plaintiff’s Sarbanes-Oxley whistleblower complaint on the ground that the plaintiff had not alleged shareholder fraud....more

Sixth Circuit Allows Key Defenses To SOX Whistleblower Claims That ARB Rejected

In a SOX whistleblower decision, the U.S. Court of Appeals for the Sixth Circuit embraced a number of employer-favorable legal standards that the Administrative Review Board (ARB) recently rejected....more

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