Kalkunte v. DVI Financial Services
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This case was the first Sarbanes-Oxley Act victory to survive an administrative appeal.
Summary of Filed Complaint
Shortly before DVI filed for bankruptcy, Kalkunte alerted the company board of directors that DVI had engaged in financial improprieties. Shortly thereafter, Kalkunte was fired despite the fact that DVI had assured her that it would need her services after bankruptcy
What Happened in Court
In making its decision in this case, the DOL interpreted SOX protections more broadly than it had in the past, determining that SOX covered privately held contractors. This stood out at the time as a reversal of the trend of more narrow construction of the SOX retaliation protections. This was also the first Sarbanes-Oxley case to succeed under the scrutiny of an appeal to the Department of Labor’s Administrative Review Board.