Leznik v. Nektar Therapeutics, Inc.
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Judge held that SOX does not require specific allegations of shareholder fraud, and that whistleblowers are not required to act outside their duties to obtain protection.
Summary of Filed Complaint
Leznik reported manufacturing problems, a lack of financial transparency, and other issues at her employer. Her employer responded by removing her from the project she was working on and subsequently fired her.
What Happened in Court
In this case, a Department of Labor Administrative Judge held that SOX does not require a whistleblower to make specific allegations of shareholder fraud, and that whistleblowers are not required to act outside of their regular employment duties to obtain protection under SOX. The decision broadened the scope of protections available to whistleblowers under SOX.