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Wallace v. Tesoro Corp.

United States Court of Appeals for the Fifth Circuit
796 F.3d 468 (2015)


Facts

Kevin Wallace (plaintiff) worked for Tesoro Corporation (defendant). Wallace reported to his supervisors that he suspected the company’s financial reporting violated Securities and Exchange Commission (SEC) rules. The following year, Wallace was fired. Wallace filed a complaint with the Occupational Safety and Health Administration under the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1514A (SOX). SOX protected employees from retaliation for reporting conduct the employee reasonably believed constituted fraud. The district court granted Tesoro’s motion to dismiss on the ground that Wallace failed to state a his claim with particularity under Rule 9(b) of the Federal Rules of Civil Procedure. Wallace appealed.

Rule of Law

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Issue

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Holding and Reasoning (Smith, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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