Whistleblower Victory in the Ninth Circuit

The Ninth U.S. Circuit Court of Appeals ruled that whistleblowers only need to show that they had disclosed something they believed was fraud to sue their former employers for wrongful termination, according to an article by Reuters.

This case delineated some of the requirements placed upon employees when suing under the whistleblower protection portion of the Sarbanes Oxley Act. Whistleblowers were truly given a victory when the court included the fact that the fired employees only need to show that they believed fraud was occurring.

Shawn and Lena Van Asdale worked as lawyers for International Game Technology (IGT) when they blew the whistle on what they believed to be shareholder fraud after a merger with another company. Both were subsequently fired and are suing under the Sarbanes Oxley Act's whistleblower protections. The court also rejected IGT’s claim that their communications were protected by attorney-client privilege when the two were lawyers for the company.

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