(In 6th paragraph corrects to show argument was unsuccessful)
By Amanda Becker
Jan 27 A former UBS AG employee must
arbitrate a claim that he was terminated for disclosing to
superiors that he was pressured to publish misleading research
U.S. District Judge Katherine Polk Failla in Manhattan found
that Trevor Murray, who was fired in February 2012, could not
cite the prohibitive provisions in the Sarbanes-Oxley Act to
avoid arbitrating a retaliation claim arising under the Dodd
Dodd-Frank is the 2010 law enacted in response to the U.S.
financial crisis. Sarbanes-Oxley is a 2002 law that created
enhanced accounting standards for publicly traded U.S. companies
after a series of accounting scandals.
"Plaintiff cannot recast his claim to arise under
Sarbanes-Oxley in order to benefit from the prohibition of
predispute arbitration agreements afforded under that statute,"
Judge Polk Failla wrote of Murray's case.
Though Murray "may have a claim under Sarbanes-Oxley" it is
not the issue before the court, Polk Failla added.
UBS unsuccessfully argued the Dodd-Frank whistleblower
provisions did not apply to Murray as he only complained to
people at UBS and not federal regulators, as required by the
Murray had cited rules adopted by the SEC in 2011
interpreting the Dodd-Frank law as extending the law's
anti-retaliation provisions to protect individuals whose
disclosures were made under the earlier Sarbanes-Oxley Act, even
if the person had not complained to regulators.
Representatives for UBS did not immediately respond to a
request for comment.
Murray was a senior commercial mortgage-backed securities
strategist from May 2011 to February 2012.
Murray's case in federal court is now on hold pending the
outcome of the arbitration proceedings with UBS.
The case is Murray v. UBS Securities, LLC, et al, U.S.
District Court, Southern District of New York, No. 12-05914.
(Reporting by Amanda Becker in Washington; Additional reporting
by Nate Raymond in New York; Editing by Lisa Shumaker)