Fidelity wins whistle-blower appeal
Court says US law doesn’t apply to mutual fund firms
A federal law that protects employees at public companies when they blow the whistle on alleged fraud does not apply to mutual funds, a US appeals court ruled on Friday. The ruling, by the US Court of Appeals for the First Circuit, overturned a Boston federal judge’s decision involving two former Fidelity Investments employees. The new ruling finds that employees of mutual fund companies are not protected under Sarbanes-Oxley, the law passed in the wake of the Enron scandal.