Securities Law | Expert Legal Commentary
April 21, 2009
Day v. Staples: The “Reasonable Belief” Required for SOX Whistleblower Protection
Day v. Staples
By
Josh Lawler and Joel B. Ginsberg of Zuber & Taillieu LLP
In Day v. Staples, 555 F.3d 42 (1st Cir. 2009), the Court of Appeals for the First Circuit ruled that the “reasonable belief” requirement for whistleblower protection under the Sarbanes-Oxley Act of 2002 (“SOX”) includes both “objective” and “subjective” reasonableness. In this case of first impression before the First Circuit, the court agreed with the Fourth Circuit’s interpretation of SOX whistleblower protection requirements and denied the protection to an aggrieved employee whose allegations failed to meet the basic elements of a securities fraud claim. The court’s ruling also suggests that employers who take seriously and investigate their employee’s claims may have a viable defense in whistleblower protection cases.
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About the Authors
Josh Lawler is a Partner of Zuber & Taillieu LLP, focusing on corporate law and securities and finance law.
Joel B. Ginsberg is an Associate of Zuber & Taillieu LLP, focusing on corporate law, and securities and finance law.
Image Credit: ©iStockphoto.com/NickyBlade
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