The Supreme Court ruled last week that the Sarbanes-Oxley Act’s whistleblower protection includes employees of a public company’s private contractors and subcontractors. Lawson v. FMR LLC et al., Case No. 12-3, 571 U.S. ___ (March 4, 2014).
Here is Lauren Regis and Christopher Robertson’s One Minute Memo on the opinion. They conclude that Justice Sotomayor, joined by Justices Kennedy and Alito, dissented, fearing that the majority’s interpretation gives the law “a stunning reach.” Now, wrote Justice Sotomayor, “individuals and private businesses” are subjected to litigation over fraud reporting that in no way furthers Congress’ goal of protecting “the interests of public company shareholders.”