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Whistleblower Law Blog

TELG’s Win in Stone v. Instrumentation Lab. Co. Helps SOX Whistleblower Proceed to Federal Court

On March 10, 2010, Judge Rae issued an order clarifying the right of SOX plaintiffs to remove their claims federal court.  In Miller v. Stifel, Nicolaus & Co. Inc., the complainant changed counsel three times and failed to respond to discovery requests.  Miller then moved to remove her claim to federal court on the basis that she had not received a final decision within 180 days of filing her complaint.  The employer objected, asserting that Miller’s failure to cooperate with discovery constituted bad faith.  Relying in part on Stone v. Instrumentation Lab. Co., Judge Rae granted Miller’s motion, holding that the sole continuance resulting in a delay was requested by the employer and remarked that “[a] mere allegation of bad faith is insufficient to successfully oppose removal under the relevant SOX provision.”

For more information about The Employment Law Group® law firm’s Sarbanes-Oxley Whistleblower practice, click here.  For more information on the Stone decision, click here.

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