Second Circuit: SOX Whistleblower Claims Require Retaliatory Intent

On August 5, 2022, the Second Circuit overturned a nearly $1 million jury award granted to a former employee of UBS Securities LLC ("UBS"). The Court held that the judge's instruction to the jury-that Plaintiff was "not required to prove that his protected activity was the primary motivating factor in his termination"-was incorrect as a matter of law. Instead, the Sarbanes-Oxley Act ("SOX") requires whistleblowers to specifically prove that the employer took the adverse employment action "with retaliatory intent." Murray v. UBS Securities LLC et al., No. 20-4202.

Background

Trevor Murray sued UBS in 2014, alleging that he was terminated by UBS after he complained that he was pressured to alter his research, in violation of SOX's antiretaliation provision, 18 U.S.C. § 1514A. Section 1514A prohibits publicly traded companies from taking adverse employment actions to "discriminate against an employee... because of" any lawful whistleblowing activity. 18 U.S.C. §