Saturday, January 07, 2006

On the Virginia Sarb-Ox case

In the latest opinion in Welch v. Cardinal Bankshares, Inc., Judge Glen Conrad of the W.D. Va. granted the defendant's motion to dismiss, concluding that the administrative proceedings were not yet ripe for district court enforcement of the plaintiff's asserted right to reinstatement after prevailing on his claims under Sarbanes-Oxley against the Southwest Virginia bank.

The Roanoke paper has this article about the case, titled "Cardinal Bankshares wins round with ex-CFO."

The article notes:

"The case has attracted national attention because former CFO David Welch and attorney Bruce Shine of Kingsport, Tenn., have argued, successfully, that Welch should have been protected from firing because of whistle-blower protections granted by the Sarbanes-Oxley Act of 2002. His case was one of the first national tests of those protections and was the first case to find for a claimant."

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