A First for the First Circuit, SOX Whistleblower Coverage Limited
Employees of mutual fund manager, Fidelity Investments, sought whistleblower protection under the Sarbanes-Oxley Act (SOX). The court squarely addressed for the first time the issue of whether employees of private companies that are contractors or subcontractors to public companies are covered under SOX. The First Circuit answered in the negative that only the employees of the defined public companies under the Act are covered by its whistleblower provisions. The clause "officer, employee, contractor, subcontractor, or agent of such company" goes to who is prohibited from retaliating or discriminating, not to who is a covered employee.
Lawson v. FMR LLC, No. 10-2240 (1st Cir. (MA) February 3, 2012).