Breakthrough Decision in Corporate Whistleblower Case

On May 25, 2011, the U.S. Department of Labor’s Administrative Review Board issued its landmark ruling in Sylvester v. Parexel International, significantly expanding the scope of protected activity under the Sarbanes-Oxley Act. The case reversed years of bad precedent clarifying that whistleblowers only need a “reasonable belief” of corporate fraud to gain protection under SOX. The case also reduced the pleading standard, making it easier for employees to file complaints. KKC attorneys, working pro bono for the National Whistleblowers Center, argued the case before the Board along with Kathy Sylvester’s attorney Joseph Schuler.