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Labor Team Wins Sarbanes-Oxley Whistleblower Case
February 25, 2005

Labor Relations & Employment lawyers Becky Gottsegen and Shelley Sullivan successfully defended Stewart Enterprises, Inc. in a Sarbanes-Oxley Act whistleblower case before an Administrative Law Judge in one of only a handful of cases to have been tried on the merits under SOX provisions protecting employees who "blow the whistle" on alleged securities law violations or fraud against shareholders.  Three Complainants alleged they were included in a company-wide reduction in force because they were "whistleblowers.” OSHA initially investigated and dismissed the complaint but Complainants requested a trial before an ALJ.  The ALJ dismissed all claims and found Complainants were not engaged in protected activity or subjected to adverse employment action because of protected activity.  The judge held Complainants' jobs were eliminated for legitimate business reasons.