Verfuerth v. Orion Energy Systems, Inc.

Federal 7th Circuit Court
Civil Court
Sarbanes-Oxley Act
Citation
Case Number: 
No. 16-3502
Decision Date: 
January 11, 2018
Federal District: 
E.D. Wisc.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendant’s motion for summary judgment in plaintiff’s action alleging that his complaints to defendant’s Board of Directors about Bd.’s own management decisions amounted to “whistle-blowing,” and that defendant’s termination of plaintiff from his CEO position because of said complaints violated Sarbanes-Oxley Act. Plaintiff could not establish violation of Sarbanes-Oxley Act, since his complaints that pertained to attorney over-billing, intellectual property disputes, conflict of interest and violations of internal company protocol did not pertain to necessary security or wire fraud within meaning of said Act. Record also did not support plaintiff’s claim that he had attempted to file online complaint with SEC about defendant’s failure to inform shareholders about said complaints by plaintiff, or that defendant had become aware of said attempted filing prior to his termination. Moreover if, as alleged by plaintiff, plaintiff’s complaints to Bd. amounted to securities fraud, plaintiff was also guilty of said fraud when he filed SEC reports on behalf of defendant without mentioning said complaints.