Emloyment Law Group - Law Firms - Whistleblower Lawyers
Live Chat Contact Us 24/7 Email US
Contact Us: Live Chat, Call, Email Chat email



Use of this form does not establish an attorney-client relationship. As a next
step, you will hear from a client specialist.



Our Clients in Their
Own Words
Play Video: Whistleblower Attorney Testimonials | Wendell Carter
Previous Video
Next Video
THE EMPLOYMENT LAW GROUP®

Toll Free: 1-888-826-5260
Fax: 202-261-2835

inquiry@employmentlawgroup.com

Employment Law Group Addresses
The Employment Law Group,PC. BBB Business Review

Whistleblower Law Blog

Department of Labor Issues Landmark Decision in Favor of Sarbanes-Oxley Whistleblowers

Share

On February 27, 2009, the United States Department of Labor’s Administrative Review Board (“ARB”) affirmed the Administrative Law Judge’s (“ALJ”) opinion in Kalkunte v. DVI Financial Services, Inc., where the ALJ held that a privately-held company acting as a contractor, subcontractor, or agent of a publicly traded company can be held liable for violation of the whistleblower provisions of the Sarbanes-Oxley Act (“SOX”).  SOX, also known as the Corporate and Criminal Fraud Accountability Act of 2002, was enacted to ensure that employees who report corporate fraud can do so without fear of employer retaliation. The Kalkunte decision is significant because it defines the scope of liability under SOX and because it is the first time that the ARB has affirmed an ALJ decision in favor of a SOX plaintiff.

In Kalkunte the complainant Sheila Kalkunte, a former Associate General Counsel of DVI Financial Services, Inc. (“DVI”), alleged that she was retaliated against for disclosing information to audit committee members and outside counsel about senior management’s alleged misrepresentation of statistical data in violation of securities laws.  In addition, Kalkunte alleged that DVI, a publicly traded company and AP Services, LLC (“AP”), a privately-held company were both liable for retaliation under Section 806 of SOX.  In its defense, AP argued that privately-held companies are not required to adhere to SOX.

In affirming the ALJ’s decision, the ARB held that a company cannot escape liability for violating the whistleblower provisions of SOX merely because it is not registered under the Securities and Exchange Act or required to file reports under the same act. 

The ARB awarded Kalkunte lost wages and compensatory damages based on its finding that there was substantial evidence supporting the ALJ’s ruling that both DVI and AP retaliated against Kalkunte because of her whisleblowing activity.

R. Scott Oswald and Nicholas Woodfield, Principals at The Employment Law Group® law firm (www.employmentlawgroup.com), represented Ms. Kalkunte and can be reached at 202-331-2883.

Tagged: ,

decorative line
greybar
blueline
facebook logo twitter logo google plus logo
Home  |  What We Do  |  Our Team  |  Our Clients  |  In The News  |  Resources  |  Contact Us


Our Locations: Washington, D.C. | San Francisco | Los Angeles

© 2017 The Employment Law Group, P.C. - All rights reserved.
Disclaimer | Terms of Use | Privacy Policy