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| May 2006 |
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| Not Just the Parent - ALJs Debate Whether SOX Covers Whistle-blowers at Nonpublic Subsidiaries |
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This article first appeared in LegalTimes, Week of May 22, 2006 • VOL. XXIX, NO. 21
Despite several years of litigation,one essential question about the whistle-blower provision of the Sarbanes-Oxley Act remains unresolved: Does it cover employees of nonpublic subsidiaries of public companies? Although the vast majority of the administrative law judges who have ruled on the matter have adopted a standard that restricts coverage of nonpublic subsidiaries to limited situations, at least one ALJ has suggested that all employees of subsidiaries may be automatically covered. |
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