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Johnson v. Siemens Building Technologies, Inc.

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In Brief

The ARB declared that whistleblowers may seek SOX’s protections from non-publicly traded subsidiaries of publicly traded companies.

What Happened in Court

The ARB declared that whistleblowers may seek SOX’s protections from non-publicly traded subsidiaries of publicly traded companies. The ARB relied on the common law of agency to arrive at its analysis, deciding that a subsidiary whose financial information in included in the parent company’s financial statements is covered by SOX. This was the first ARB case under the Obama administration to request input from outside parties.

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