Knowledge (XXG)

Murray v. UBS Securities, LLC

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342:"wasn't just unethical, it was illegal" Schumacher relayed this to one of his supervisors, Larry Hatheway. Schumacher proposed to Hatheway that Murray should either be fired or moved to the trading desk. Two days later, Murray and Schumacher met again, and Schumacher gave Murray his performance review — Schumacher did not mention to Murray that his job was in jeopardy. Murray reiterated his perception of unlawful behavior on behalf of the trading desk, but Schumacher advised Murray to just print favorable findings. After another supervisor declined to move Murray to the trading desk, Schumacher and Hatheway agreed to fire Murray. On February 6, 2012, Schumacher fired Murray. 388:, UBS made two arguments. First, it argued that Murray had failed to prove that UBS had acted with "retaliatory intent" when it terminated Murray's employment. Second, it argued that the burden of proving retaliatory intent should fall on Murray, rather than requiring UBS to show a lack of such retaliatory intent. The Court disagreed with UBS on its first argument, finding that sufficient evidence had been presented at trial to prove that UBS had acted with retaliatory intent. However, it agreed with UBS on its second argument, that the jury should have been instructed that it was Murray's burden to prove retaliatory intent. Murray unsuccessfully petitioned for an 29: 372:
that he was fired for his unfavorable reporting. On the other hand, UBS contended that Murray's entire claim was fabricated — that there was no pressure directed at Murray, and thus none of his behavior could have been protected by SOX. Jurors were instructed that, for Murray to prevail on his retaliation claim, he must prove four factors: (1) that he engaged in protected conduct, (2) that his employer was aware of this conduct, (3) that he was fired, and (4) that his conduct was a contributing factor in his termination.
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reporting "was a contributing factor in the unfavorable personnel action alleged in the complaint." If the employee meets this burden, then the employer can only prevail if it "demonstrates by clear and convincing evidence that the employer would have taken the same unfavorable personnel action in the absence of that behavior."
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delivered a unanimous opinion, siding with Murray. The justices held that with the protections of SOX, a whistleblower does not have to prove that their employer acted with "retaliatory intent", but that they do need to prove that their activity, protected by SOX, contributed to what the employer did
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Despite this, Murray's supervisors pressured him into skewing his findings in favor of UBS business strategies. Although UBS's compliance department had physically separated Murray's workspace from the trading floor (which actively sold CMBS) to ensure compliance, his supervisors continued to attempt
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The jury was instructed that, if it found the existence of these four factors, it should shift to the second step of SOX's burden shifting framework. Namely, in order to prevail, UBS would need to demonstrate that it would have terminated Murray's employment regardless of his engagement in protected
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In early December 2011, Murray's supervisor, Michael Schumacher, prepared a glowing review of Murray's performance. He had not yet been made aware of the pressure Murray was receiving from the trading desk. Later that month, the two met and Murray revealed the situation to Schumacher, saying that it
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states that when a whistleblower invokes the Act, claiming that he was fired for his reporting, his claim is "governed by the legal burdens of proof set forth in section 42121(b) of title 49, United States Code." Under that framework, the employee meets his burden of proof by demonstrating that his
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Murray's case went to trial in 2017. At trial, Murray contested that: he was unlawfully pressured by the UBS trading desk to skew his work product in favor of UBS's CMBS business, in violation of SEC regulations; he reported this behavior to his supervisor, who then advised him to capitulate, and;
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Under the burden-shifting framework that governs Sarbanes-Oxley cases, must a whistleblower prove his employer acted with a "retaliatory intent" as part of his case in chief, or is the lack of "retaliatory intent" part of the affirmative defense on which the employer bears the burden of
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activity. If they found that UBS had improperly retaliated against Murray, then he would be entitled to compensation. The jury found that Murray had proven all four elements of his claim, but that UBS had not met its burden of proof. Murray was awarded nearly $ 1 million in damages.
305:) SOX mandated certain financial record keeping and reporting practices for corporations. The Act imposes responsibilities upon a public corporation's board of directors, and adds criminal penalties for misconduct. 360: 354:
alleging that his employment was terminated in retaliation because of his whistleblowing, in violation of the Sarbanes-Oxley Act. After 180 days, his complaint lapsed, and Murray exercised his right to file a
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In order to encourage disclosure, SOX protects whistleblowers who report financial wrongdoing by providing a civil cause of action to protect against retaliation by employers. The portion of SOX that amended
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to influence Murray's work. Notwithstanding Murray's internal memoranda describing the firm's CMBS trading as "risky", his supervisors continued to describe it as profitable and successful.
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must prove that their protected activity was a contributing factor in the employer’s unfavorable personnel action, but need not prove that the employer acted with “retaliatory intent.”
326:, a multinational investment bank and financial services company. In 2011, he was recruited back to UBS. When he returned, Murray was responsible for researching UBS's commercial 385: 266: 77: 573: 578: 430: 334:(SEC) regulations required Murray to certify, under penalty of law, that his findings accurately reflected his personal and independent views. 538: 509: 494: 479: 331: 33: 351: 588: 274: 327: 400:
On January 13, 2023, Murray petitioned the Supreme Court to hear his case. On May 1, 2023, the Court granted
159: 290: 61: 270: 229: 72: 498: 294: 278: 99: 513: 221: 483: 302: 455: 408: 217: 197: 185: 297:(SOX). Passed in the aftermath of various major corporate accounting scandals (including 567: 298: 277:
case regarding the standard for bringing a whistleblower retaliation claim under the
330:(CMBS), and reporting his findings to the firm's current and prospective customers. 209: 193: 177: 130: 205: 118: 310: 134: 89: 122: 361:
United States District Court for the Southern District of New York
431:"UBS Whistleblower's Retaliation Case Taken Up by Supreme Court" 28: 323: 456:"SEC.gov | The Laws That Govern the Securities Industry" 584:
United States Supreme Court cases of the Roberts Court
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United States Court of Appeals for the Second Circuit
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A whistleblower seeking to invoke the protections of
250: 242: 237: 166: 152: 141: 110: 105: 95: 85: 67: 57: 47: 40: 21: 52:Trevor Murray v. UBS Securities LLC, and UBS AG 404:. Oral argument was held on October 10, 2023. 350:In August 2012, Murray filed a claim with the 8: 322:From 2007 to 2008, Trevor Murray worked for 533: 531: 529: 527: 525: 523: 521: 18: 421: 16:2024 United States Supreme Court case 7: 546:Supreme Court of the United States 332:Securities and Exchange Commission 34:Supreme Court of the United States 14: 574:United States Supreme Court cases 429:Atkinson, Khorri (May 1, 2023). 27: 579:2024 in United States case law 246:Sotomayor, joined by unanimous 1: 262:Murray v. UBS Securities, LLC 22:Murray v. UBS Securities, LLC 275:United States Supreme Court 605: 499:§ 42121(b)(2)(B)(iii) 328:mortgage-backed securities 160:section 806 of the SOX Act 514:§ 42121(b)(2)(B)(iv) 171: 157: 146: 26: 254:Alito, joined by Barrett 43:Decided February 8, 2024 392:rehearing of his case. 127:Murray v. UBS Sec., LLC 41:Argued October 10, 2023 291:United States Congress 539:"Brief for Petitoner" 484:§ 1514A(b)(2)(C) 407:On February 8, 2024, 230:Ketanji Brown Jackson 273:23 (2024), is a 352:Department of Labor 346:Lower court history 142:Questions presented 117:, 43 F.4th 589:Sarbanes–Oxley Act 295:Sarbanes–Oxley Act 279:Sarbanes-Oxley Act 182:Associate Justices 115:Murray v. UBS Sec. 409:Justice Sotomayor 384:On appeal to the 258: 257: 222:Amy Coney Barrett 596: 558: 557: 555: 553: 543: 535: 516: 507: 501: 492: 486: 477: 471: 470: 468: 466: 452: 446: 445: 443: 441: 426: 380:Court of Appeals 167:Court membership 31: 30: 19: 604: 603: 599: 598: 597: 595: 594: 593: 564: 563: 562: 561: 551: 549: 548:. June 27, 2023 541: 537: 536: 519: 508: 504: 493: 489: 478: 474: 464: 462: 454: 453: 449: 439: 437: 428: 427: 423: 418: 398: 382: 369: 348: 320: 287: 220: 218:Brett Kavanaugh 208: 198:Sonia Sotomayor 196: 186:Clarence Thomas 42: 36: 17: 12: 11: 5: 602: 600: 592: 591: 586: 581: 576: 566: 565: 560: 559: 517: 510:49 U.S.C. 502: 495:49 U.S.C. 487: 480:18 U.S.C. 472: 447: 420: 419: 417: 414: 397: 394: 381: 378: 368: 367:District Court 365: 359:action in the 347: 344: 319: 316: 286: 283: 256: 255: 252: 248: 247: 244: 240: 239: 235: 234: 233: 232: 183: 180: 175: 169: 168: 164: 163: 155: 154: 150: 149: 144: 143: 139: 138: 112: 108: 107: 103: 102: 97: 93: 92: 87: 83: 82: 69: 65: 64: 59: 55: 54: 49: 48:Full case name 45: 44: 38: 37: 32: 24: 23: 15: 13: 10: 9: 6: 4: 3: 2: 601: 590: 587: 585: 582: 580: 577: 575: 572: 571: 569: 547: 540: 534: 532: 530: 528: 526: 524: 522: 518: 515: 511: 506: 503: 500: 496: 491: 488: 485: 481: 476: 473: 461: 457: 451: 448: 436: 435:Bloomberg Law 432: 425: 422: 415: 413: 412:in response. 410: 405: 403: 396:Supreme Court 395: 393: 391: 387: 379: 377: 373: 366: 364: 362: 358: 353: 345: 343: 339: 335: 333: 329: 325: 317: 315: 312: 306: 304: 300: 296: 292: 289:In 2002, the 285:Prior history 284: 282: 280: 276: 272: 268: 264: 263: 253: 249: 245: 241: 238:Case opinions 236: 231: 227: 223: 219: 215: 211: 207: 203: 199: 195: 191: 187: 184: 181: 179: 176: 174:Chief Justice 173: 172: 170: 165: 161: 156: 151: 145: 140: 136: 132: 128: 124: 120: 116: 113: 109: 104: 101: 98: 94: 91: 90:Oral argument 88: 84: 80: 79: 74: 70: 66: 63: 60: 56: 53: 50: 46: 39: 35: 25: 20: 550:. Retrieved 545: 505: 490: 475: 463:. Retrieved 459: 450: 438:. Retrieved 434: 424: 406: 401: 399: 389: 383: 374: 370: 356: 349: 340: 336: 321: 307: 293:enacted the 288: 261: 260: 259: 225: 213: 210:Neil Gorsuch 201: 194:Samuel Alito 189: 178:John Roberts 126: 114: 106:Case history 76: 51: 460:www.sec.gov 251:Concurrence 206:Elena Kagan 568:Categories 416:References 402:certiorari 318:Background 129:, 14 Civ. 58:Docket no. 552:August 3, 465:August 3, 440:August 3, 131:927 (KPF) 68:Citations 311:Title 18 303:WorldCom 243:Majority 135:S.D.N.Y. 96:Decision 86:Argument 390:en banc 357:de novo 153:Holding 125:2022). 123:2d Cir. 100:Opinion 512:  497:  482:  228: 226:· 224:  216: 214:· 212:  204: 202:· 200:  192: 190:· 188:  148:proof? 62:22-660 542:(PDF) 299:Enron 269: 137:2020) 111:Prior 554:2023 467:2023 442:2023 301:and 271:U.S. 78:more 75:23 ( 73:U.S. 71:601 324:UBS 267:601 119:254 570:: 544:. 520:^ 458:. 433:. 363:. 281:. 265:, 556:. 469:. 444:. 133:( 121:( 81:)

Index

Supreme Court of the United States
22-660
U.S.
more
Oral argument
Opinion
254
2d Cir.
927 (KPF)
S.D.N.Y.
section 806 of the SOX Act
John Roberts
Clarence Thomas
Samuel Alito
Sonia Sotomayor
Elena Kagan
Neil Gorsuch
Brett Kavanaugh
Amy Coney Barrett
Ketanji Brown Jackson
601
U.S.
United States Supreme Court
Sarbanes-Oxley Act
United States Congress
Sarbanes–Oxley Act
Enron
WorldCom
Title 18
UBS

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