UBS Whistleblower Suffers Setback as Jury Verdict Overturned
The 2nd U.S. Circuit Court of Appeals overturned a jury verdict awarding damages to Trevor Murray, a former UBS bond strategist who had successfully petitioned the Supreme Court to facilitate corporate whistleblower retaliation lawsuits.
The court ruled that flawed jury instructions allowed the jury to determine that Murray's whistleblowing contributed to his termination without sufficient evidence. The instructions stated that whistleblowing could be a contributing factor if it "tended to affect in any way" UBS's decision, but they should have required proof that it "actually did" lead to the firing.
As a result, UBS is not required to pay Murray the $903,300 jury award or $1.77 million in legal fees. The case was remanded to the Manhattan district court for further proceedings.
This decision follows a unanimous Supreme Court ruling in February 2022 that restored the initial jury verdict, which had been thrown out by the 2nd Circuit. However, the recent ruling indicates that whistleblowers must still demonstrate a causal link between their actions and retaliatory treatment.
Murray alleges that he was fired by UBS in 2012 after voicing concerns about biased research on commercial mortgage-backed securities. UBS maintains that his termination was part of a broader cost-cutting initiative.
The dissenting opinion expressed by Circuit Judge Myrna Perez argues that the jury instructions were adequate and that a reasonable jury would have understood them correctly.