American Express Must Defend Whistleblower’s Retaliation Suit

American Express Co. failed to convince a federal judge that a former manager’s lawsuit alleging she was retaliated against after complaining of fraudulent commission practices was untimely and should be dismissed.

The Sarbanes-Oxley Act of 2002’s whistleblower provision provides a statute of limitations of 180 days for filing a complaint with the Secretary of Labor, which bars the application of the “catchall 4-year statute of limitations” to file a lawsuit in federal court, the US District Court for the District of Arizona said July 11, denying Amex’s motion to dismiss.

Although SOX’s limitations period “may be a bit unusual"—as it only creates a discrete time limit for the initial filing of the administrative complaint and makes the time limit for filing an ensuing kick-out action in federal court contingent of the resulting administrative process—it’s still a limitations period, the court said.

Sophia Lewis brought two administrative complaints in 2019 and 2020 before the Secretary of Labor. While the second complaint was in review, she sued in federal court.

Lewis alleged that she was “harassed, subjected to a hostile work environment, and wrongfully terminated from her employment with Amex.” She claimed she was terminated after she made protected disclosures that she “reasonably believed violated the Sarbanes-Oxley Act and regulations.”

The SOX makes it illegal for publicly traded companies to retaliate against employees who report potentially unlawful conduct.

The ruling is noteworthy for clarifying an issue that hasn’t been directly addressed by the US Court of Appeals for the Ninth Circuit and has divided district courts—which limitations period should apply in these cases.

Amex sought dismissal arguing that SOX’s lack of a limitations period to file a lawsuit in federal court means that the catch-all 4-year period should apply. Lewis argued that since the SOX provides its own statute of limitations, the 4-year period is inapplicable.

The court ruled that the act provides its own statute of limitations for whistleblower claims, including “kick-out” actions filed in federal court.

“The kick-out provision creates a ‘safety valve’ to ensure that claims brought within the Department of Labor are processed within a reasonable time,” Judge Dominic W. Lanza said for the court. “Sarbanes-Oxley does not set forth any additional limitations period within which the de novo action must be brought in federal court.”

Amex didn’t immediately respond to a request for comment.

Guyer & Ayers represents Lewis. Jackson Lewis PC and Orrick Herrington & Sutcliffe LLP represent Amex.

The case is Lewis v. Am. Exp. Co., D. Ariz., No. 2:24-cv-03370, 7/11/25.