SOX Whistleblowers Protection

Does a Whistleblower complaint that results in an internal investigation constitute a protected activity?

 Yes under the facts of this case at least.

In Johnson v. Stein Mart, Inc., No. 3:06-CV-00341 (M.D.Fla. June 20, 2007) (case below 2006-SOX-52), the Plaintiff had been hired as a Buyer at the Defendant’s corporate headquarters, and was later promoted to be a Planner, in which capacity she complained to management about (1) the collection of markdown allowances from vendors, (2) the changing of season codes on older inventory, and (3) the accounting for the value of inventory. The Employer, Stein Mart,  argued that the Plaintiff failedto establish a prima facie case on the element of protected activity because she did not have a reasonable belief that these practices were illegal because she had no accounting background and had no knowledge of the Defendant’s accounting practices. Stein Mart  argued that its vendor markdown allowances and season code changes were in line with general industry practices. The district court rejected this argument because Stein Martt had treated the Plaintiff’s complaints reasonable enough to have warranted an internal investigation.

SOX whistleblowers

whistleblowers help

whistleblowers protection

wrongful termination