SOX, Statutory Interpretation, and the Seventh Amendment: Sarbanes-Oxley Act Whistleblower Claims and Jury Trials

The Sarbanes-Oxley Act was passed in response to corporate fraud and cover ups; employees who discovered the fraudulent practices were reluctant to report the practices to the federal authorities due to lack of legal protections for whistleblowers. The Sarbanes-Oxley Act contains provisions to protect corporate whistleblowers and provides for civil and criminal penalties against those who retaliate. Congress authorized private right of action suits in federal court for such situation but did not explicitly state whether the right to a jury trial was included. This article discusses the statutory meaning and interpretation of the Act and whether the Seventh Amendment applies in these situations. The author concludes with the assertion that jury trials should be available for Sarbanes-Oxley suits, that the jury should decide questions of fact, and that the judge should decide questions of law.