On June 7, 2022, the United States District Court for the Northern District of California, relying on recent ARB decisions, held that a plaintiff who lived and worked for a Canadian subsidiary of a US company could not avail himself to the anti-retaliation provisions of SOX and the Dodd-Frank Act. Daramola v. Oracle Am., Inc., No. 19-cv-07910. In so doing, the court solidified an increasingly well-defined test for what constitutes a domestic application of these statutes.
Plaintiff lived in and worked in Montreal, Canada, where he worked for Oracle Canada (the “Company”). Following his resignation, Plaintiff sued the Company in the United States, alleging, inter alia, whistleblower retaliation in violation of SOX and Dodd-Frank. He alleged that the Company made millions of dollars selling subscriptions for software that did not exist to colleges throughout the United States. He further alleged that he was constructively discharged after he internally reported his concerns that the Company had engaged in fraud. The Company moved to dismiss on the grounds that SOX and Dodd-Frank do not apply extraterritorially.
The court first observed that the anti-retaliation provisions in both SOX and Dodd-Frank do not apply extraterritorially, i.e., outside the United States. While the Ninth Circuit has not expressly addressed the issue, the court relied on the Second Circuit’s holding in Liu Meng-Lin v. Siemens AG, 763 F.3d 175 (2d Cir. 2014), that the anti-retaliation...
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