In an article titled, “ARB Upholds Bankrupt Firm’s SOX Liability But Recalculates Retaliatory Discharge Award,” BNA reports on the Labor Department’s holding in Kalkunte v. DVI Financial Services, Inc., ARB NO. 05-139 (February 27, 2009), where the Administrative Review Board (“ARB”) in a 2-1 decision, found substantial evidence to support a finding that Ms. Kalkunte’s whistleblowing activity, i.e. her disclosure that senior management had provided false information to lenders, board members, and the Securities and Exchange Commission was a contributing factor in her discharge from DVI Financial Services. The article highlights the extent to which the burden-shifting framework under the Sarbanes-Oxley Act (“SOX”) is very favorable to employees. Finding that the stated reasons for Kalkunte’s discharge “were a pretext, and that the real reason for her discharge was her ongoing preoccupation with the status of the Arnold & Porter investigation” into her disclosures about financial improprieties, the ARB affirmed the Administrative Law Judge’s (“ALJ”) decision that DVI and APS were both liable for whistleblower retaliation. The ARB also affirmed the ALJ’s award of damages for pain, suffering, mental anguish, and humiliation.
Ms. Kalkunte was represented by R. Scott Oswald and Nicholas Woodfield of The Employment Law Group® law firm. For more information about the firm’s Sarbanes-Oxley Whistleblower Practice, click here.
Law360 writes about the recent Sarbanes-Oxley (“SOX”) decision issued by the Department of Labor’s Administrative Review Board (“ARB”) in Kalkunte v. DVI Financial Services, Inc. According to the article, this decision is significant because it is the first SOX case to survive an appeal to the ARB. In Kalkunte, the ARB affirmed an administrative law judge’s opinion concluding that AP, a privately-held subsidiary of DVI Financial Services, was liable under SOX, even though it was not publicly traded. In reaching this decision, the ARB looked to the Act’s statutory language which holds: “any officer, employee, contractor, subcontractor, or agent” of publicly traded companies liable for terminating whistleblowers.
Ms. Kalkunte was represented by Scott Oswald and Nicholas Woodfield of The Employment Law Group® law firm. For more information about the firm’s Sarbanes-Oxley Whistleblower Practice, click here.
The National Law Journal writes about The Employment Law Group® law firm’s recent win before the U.S. Department of Labor’s Administrative Review Board (“ARB”) in an article titled, “Labor Department Expands Whistleblower Protections to a Company’s Contractors.” The article discusses this seminal case, Kalkunte v. DVI Financial Services, Inc., in which the ARB held that Section 806 of the Sarbanes-Oxley Act (“SOX”) imposes liability on publicly-traded companies as well as contractors of private companies. The article quotes Nicholas Woodfield, a Principal at the Washington-based firm, who noted that “The decision is the first time the Labor Department’s administrative review board has upheld an administrative law judge’s decision in favor of a complainant filing a Sarbanes-Oxley whistleblower retaliation claim.”
Principals Scott Oswald and Nicholas Woodfield of The Employment Law Group® law firm represented Ms. Kalkunte. To learn more about the firm’s Sarbanes-Oxley Whistleblower practice, click here.
Jason Zuckerman, a Principal at The Employment Law Group® law firm will speak at a D.C. Bar Luncheon Program about the recently enacted whistleblower provision in the economic stimulus bill and additional whistleblower protections for employees of government contractors, including the False Claims Act. The program will take place on Monday, April 6, 2009 from 12:00 PM – 2:00 PM. For more information on this program including location and costs, click here. To register for this program, click here.
The Employment Law Group® law firm is a contributing author of the 2009 annual update on the whistleblower retaliation provision of the Sarbanes-Oxley Act of 2002, a copy of which is available here. This annual update is a project of the ABA Section of Labor and Employment Law Committee on Federal Labor Standards Legislation Subcommittee on the Sarbanes-Oxley Act of 2002.