Northrop Grumman Systems Corp. v. US Department of Labor

Intervenor alleged that she was terminated by Northrop in violation of the whistleblower protection provision of the Sarbanes-Oxley Act (SOX). The Fourth Circuit held that intervenor did not qualify for whistleblower protection under 18 U.S.C. 1514A, because she did not engage in protected activity. In this case, neither of intervenor's complaints about Northrop's arbitration policy nor her complaints about violations of section 1514A(e) involved any of the basic elements of shareholder fraud. Furthermore, her beliefs were not objectively reasonable. Therefore, the court vacated the administrative orders and remanded the case with instructions for the dismissal of intervenor's complaint and entry of judgment for Northrop. View "Northrop Grumman Systems Corp. v. US Department of Labor" on Justia Law