On March 20, 2025, in Zornoza v. Terraform Global Inc. et al, No. 818-cv-02523 (D. Md. Apr. 4, 2025), a former executive of two SunEdison subsidiaries secured a $34.5 million settlement over his SOX whistleblower retaliation claims.

Background

Carlos Domenech Zornoza (the “Executive”), the former President and CEO of two SunEdison subsidiaries, filed a whistleblower retaliation complaint with the U.S. Department of Labor in May 2016.  He alleged under Section 806 of SOX that he had been terminated for raising, among other things, concerns about SunEdison’s allegedly false reporting of its projected cash holdings to company officers, directors, and the investing public, as well as potential self-dealing transactions between SunEdison and its subsidiaries.  In August 2018, the Executive asserted his claims against the two subsidiaries and SunEdison, as well as several individual officers and directors of the companies, in the U.S. District Court for the District of Maryland.  He sought damages exceeding $35 million, including for back pay, interest, benefits, and lost stock grants.

In January 2025, after a two-week bench trial and rounds of motion practice, the court found for the Executive on the issue of liability, and set the damages phase of the trial for a later date.

Settlement

Immediately prior to the commencement of the damages phase, the Executive’s counsel announced that the Executive had agreed to a whopping $34.5 million settlement, the largest documented settlement for a whistleblower retaliation claim under the statute.

Takeaway

The record-breaking settlement in this case, as well as the protracted length of the litigation, underscores the cost and potential damages implicated by alleged SOX violations. The settlement may also further embolden plaintiffs with purported SOX whistleblower claims to assert them in court, and inflate the value of such claims in the future.

Posted in Whistleblower
Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower…

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower Practice. Steven’s national practice focuses on defending companies in federal and state courts and in arbitration fora against the full spectrum of employment-related claims, including claims of executives; restrictive covenant violations; employee raiding; theft of trade secrets; whistleblower retaliation under the Sarbanes-Oxley Act, the Dodd-Frank Act and similar state laws; and wage-and-hour violations, including class, collective and PAGA actions.

Steven has successfully handled trials in multiple jurisdictions; prevailed in seeking and defending against applications for temporary restraining orders and preliminary injunctions; defended one of the largest Illinois-only class actions in the history of the federal courts in Illinois (over 90k putative class members); and prevailed following his oral arguments before federal and state appellate courts. He brings his litigation experience (beginning in 1998) to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has the unusual experience of testifying in federal court in connection with investigations. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers. Chambers has reported:

  • Steven is “one of the best in the country and has a lot of experience”;
  • Steven is as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field”;
  • He is thoughtful, attentive and demonstrates an acute understanding of matters top of mind for business-minded general counsel; and
  • “He is someone who can navigate the twists and turns of litigation without difficulty.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a ”Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a U.S. Library of Congress Burton Award Winner for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal. The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.

Read more about Steven J. Pearlman
Show more Show less
Photo of Hayden F. Bashinski Hayden F. Bashinski

Hayden F. Bashinski earned his J.D. cum laude from the Cumberland School of Law, Samford University, where he was the Student Materials Editor for the Cumberland Law Review. Prior to attending law school, Hayden attended the University of Mississippi, and spent time studying…

Hayden F. Bashinski earned his J.D. cum laude from the Cumberland School of Law, Samford University, where he was the Student Materials Editor for the Cumberland Law Review. Prior to attending law school, Hayden attended the University of Mississippi, and spent time studying abroad at the London School of Economics.

Hayden focuses his practice on labor and employment law matters. He has experience defending clients in matters pending before administrative personnel boards and agencies, the AAA, JAMS, FINRA, and state and federal courts, including single-plaintiff lawsuits and class and collective actions. In addition to his litigation practice, Hayden regularly advises clients regarding employee policies and personnel decisions. Hayden also assists clients in conducting workplace investigations related to discrimination, harassment, and retaliation.

Read more about Hayden F. Bashinski
Show more Show less
Photo of Justin Chuang Justin Chuang

Justin Chuang is an associate in the Labor Department and is a member of the Employment Litigation & Counseling Groups.

Justin is a Georgetown Law graduate with a strong background in public interest law and policy. He led a clinic project on gentrification…

Justin Chuang is an associate in the Labor Department and is a member of the Employment Litigation & Counseling Groups.

Justin is a Georgetown Law graduate with a strong background in public interest law and policy. He led a clinic project on gentrification and displacement in D.C.’s Chinatown, interned at the Asian Pacific American Legal Resource Center on tenants’ rights and immigration, and authored a report on Asian American gun ownership at the Brady Center. Justin also served as a senior staff editor for the Georgetown Journal of Modern and Critical Race Perspectives.

Read more about Justin Chuang
Show more Show less
Related Posts
SOX Whistleblower Claim Survives Summary Judgment Despite No Explicit Allegation of Fraud
May 12, 2026
The Department of Justice, Antitrust Division Issues Its First Reward To Anonymous Whistleblower For Providing Information Leading To The Resolution of Antitrust And Wire Fraud Charges
January 30, 2026
Ninth Circuit Revives Rail Worker’s Whistleblower Claims
October 7, 2024