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Abstract

Among Sarbanes-Oxley Act of 2002 's many requirements and protections are protections for whistleblowers, the Sherron Watkins' and Cynthia Coopers' of the world, who are the first to take risks to alert others of a potential fraud. These whistleblowers normally would be able to utilize the court system to vindicate their rights in the event of a retaliatory employment action. Recently, however, employers have begun using mandatory arbitration agreements to keep potentially embarrassing whistleblower actions out of the court system. Guyden v. Aetna, Inc. is a recent Second Circuit case that examined the enforceability of such agreements, ultimately holding that whistleblower claims under SOX can be heard in confidential arbitration proceedings.

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