Boeing legally fired auditors who talked to PI reporters, court finds
Boeing could legally fire two employees for leaking concerns about compliance with auditing standards to the Seattle Post-Intelligencer, an appeals panel ruled Tuesday.
The employees, Matthew Neumann and Nicholas Tides plan to appeal the ruling by a three-judge panel of the 9th Circuit Court of Appeals to the full circuit, their lawyer, John Tollefsen, said Tuesday.
Lawyer Stephen Kohn, who filed a friend of the court brief on the behalf of the National Whistleblowers Center, called the decision "a major setback for oversight and accountability."
But Boeing spokesman John Dern said the ruling "upholds the actions that the company took to enforce our policies around protecting information," adding: "We do have processes in place for employees to report their concerns, and this ruling reinforced that those should be followed."
Neumann and Tides were auditors who helped Boeing comply with the federal Sarbanes-Oxley Act's requirement that it annually assess the effectiveness of its internal controls and procedures for financial reporting.
They say managers pressured auditors to rate Boeing's internal controls as "effective," fostered a hostile work environment and ignored their concerns about this pressure and potential violations of Sarbanes-Oxley, according to Tuesday's ruling. These potential violations related to Boeing giving Price-WaterhouseCoopers contractors managerial authority over Boeing employees, the involvement of the contractors in the design and audit of Boeing's internal controls and the integrity of data the software system Boeing used to record relevant audit results.
Neumann disclosed these concerns to the Seattle Post-Intelligencer in May 2007, after reporter Andrea James contacted him. In July 2007, Tides sent James a series of work-related emails from his Boeing computer documenting the concerns he had raised, along with several internal Boeing documents, including copies of the company's policies governing contract labor, according to Tuesday's ruling.
The P-I published a report about these issues on July 17, 2007. After a Boeing investigation found that Neumann and Tides had given information to the paper, the company suspended and then fired the auditors.
They filed federal complaints, arguing for protection under the whistleblower provision of Sarbanes-Oxley. On Feb. 9, 2010, U.S. District Court Judge John Coughenour dismissed the complaints in summary judgment.
Sarbanes Oxley Overview - News

They filed federal complaints, arguing for protection under the whistleblower provision of Sarbanes-Oxley. On Feb. 9, 2010, US District Court Judge John Coughenour dismissed the complaints in summary judgment. The Sarbanes-Oxley act protects employees
Summary: In a case of first impression, the US Court of Appeals for the Second Circuit has held that a company may not indemnify its CEO or CFO against liability under Section 304 (the “clawback” provision) of the Sarbanes-Oxley Act of 2002.
Kuthiala: A network constantly needs updates, whether its configuration updates or being in compliance with a number of different policies — Sarbanes-Oxley (SOX) or the Health Insurance Portability and Accountability Act (HIPAA), and government
Therefore, he argues, his conduct is a protected activity under the whistleblower protection provision of the Sarbanes-Oxley Act (SOX). See Stevenson v. Superior Court, 941 P.2d 1157, 1161 (Cal. 1997) (protected activity must be based on "either
10-cv-35238 (May 3, 2011), that the whistleblower provisions of the Sarbanes-Oxley Act (SOX) do not protect leaks of confidential company information to media organizations. This decision is significant to employers, as it is another example of a
Sarbanes Oxley Overview | 101 Information World
Even thought so many vendors offer the Sarbanes Oxley software but still many of the top executive still find hard to comprehend the Act. This is because although the Act contains 11 main titles, still, there are total 90 sections and three hundred discreet points of law. Sarbanes Oxley software also contains a management compliance guide to provide a detailed literature on corporate governance. This management guide from Sarbanes Oxley software is a good guide for educating and bringing about awareness about the act amongst the corporate personnel.
Sarbanes Oxley Overview - Bookshelf
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Sarbanes–Oxley Act - Wikipedia, the free encyclopedia
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