Cal. Court Limits Protected Activity Under Dodd-Frank Whistleblower Provision

In Nazif v. Computer Sciences Corporation, No. 13-cv-5498 (N.D. Cal. June 17, 2015), the Northern District of California granted Defendant Computer Sciences Corp. (Company) summary judgment on Plaintiff Nazif's Dodd-Frank whistleblower retaliation claim, concluding there was no evidence that his purported belief that the Company violated securities laws was objectively reasonable under Section 806 of SOX. This case illustrates the intersection between the SOX and Dodd-Frank whistleblower provisions and constructs a high hurdle to whistleblowers raising issues of securities fraud.

Background

Plaintiff, a CPA who was employed by the Company, allegedly complained to his managers about various purported errors in the Company's accounting practices. His employment was subsequently terminated as part of a company-wide reorganization, and he filed suit claiming, among other things, that his termination constituted retaliation in violation of the whistleblower protection