Mutual fund employees at publicly-traded companies are not covered by federal whistleblower laws, the First Circuit Court of Appeals ruled on Friday.
In a case of first impression, the First Circuit overturned a lower court’s decision to apply the Sarbanes-Oxley Act to private company advisers that contract with public companies.
The case involved two former Fidelity Investments employees who claimed that they were punished by their employer for alleging fraudulent practices at the company.
Fidelity argued that the employees weren’t covered by Sarbanes-Oxley since it is not a publicly traded company that Congress intended the Act to cover.






