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.

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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, Whistleblower, Restrictive Covenant and Trade Secret Practice.…

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, Whistleblower, Restrictive Covenant and Trade Secret Practice. Steven’s national practice focuses on defending companies in federal and state courts and arbitration against claims of: discrimination, retaliation and harassment, including claims brought by high-level executives; whistleblower retaliation; restrictive covenant violations; theft of trade secrets; and wage-and-hour violations (including class, collective and PAGA actions).

Illustrating his versatility, Steven has successfully handled bench and jury trials in multiple jurisdictions (e.g., Illinois, California, Florida and Texas); defended one of the largest Illinois-only class actions in the history of the federal courts in Chicago; and prevailed following his oral arguments before the Seventh Circuit and state appellate courts. Steven brings his litigation experience 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 testified in federal court. 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 was also named as One of the Top 10 Impactful Labor & Employment Lawyers in Illinois for 2023 by Business Today. He is a Fellow of the College of Labor and Employment Lawyers. Chambers describes Steven as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field.” Chambers also reports that “He is someone who can navigate the twists and turns of litigation without difficulty. Steven is great with brief-writing, crafting arguments, and making sure the client is always happy.”

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 Burton Award Winner (U.S. Library of Congress) 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. He was appointed to serve as a Special Assistant Attorney General for the State of Illinois in employment litigation matters. He has presented with the Solicitor of the DOL, the Acting Chair of the EEOC, an EEOC Commissioner, Legal Counsel to the EEOC, and heads of the SEC, CFTC and OSHA whistleblower programs. He is also a member of the Sedona Conference, focusing on trade secret matters.

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.

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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.

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Justin Chuang

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

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