A former UBS employee must arbitrate a claim that he was terminated for disclosing to superiors that he was pressured to publish misleading research reports.
Reuters reports that U.S. District Judge Katherine Polk Failla in Manhattan found that Trevor Murray, who was fired in February 2012, could not cite the prohibitive provisions in the Sarbanes-Oxley Act to avoid arbitrating a retaliation claim arising under the Dodd Frank Act.
Dodd-Frank is the 2010 law enacted in response to the U.S. financial crisis. Sarbanes-Oxley is a 2002 law that created enhanced accounting standards for publicly traded U.S. companies after a series of accounting scandals.
'Plaintiff cannot recast his claim to arise under Sarbanes-Oxley in order to benefit from the prohibition of predispute arbitration agreements afforded under that statute,' Judge Polk Failla wrote of Murray's case.
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