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Supreme Court to Hear Fidelity Whistleblower Case

The Supreme Court agreed to consider whether the Sarbanes-Oxley Act whistleblower protections apply to private advisers that provide services to mutual funds.  The case involves two former Fidelity employees who reported possible security law violations, including the alleged improper retention of $10 million in fees.  Fidelity allegedly retaliated against the employees in a variety of ways, including giving poor reviews and, in one case, terminating employment.  Fidelity is arguing that the Sarbanes-Oxley whistleblower protections do not apply to the corporation because it is a privately held company.  However, the plaintiffs are arguing that the protections should be extended to employees of contractors working for public companies, like mutual funds.