BofI CEO’s Trial Win Against Whistleblower Tossed on Appeal

An internal auditor at BofI Federal Bank got a jury verdict overturned in a case where the bank’s CEO accused him of invasion of privacy while investigating possible regulatory violations at the bank.

The jury instructions requested by the CEO, Gregory Garrabrants, misstated the law in ways that were prejudicial on each of the three counts for which they found in his favor, Justice Jose S. Castillo of the California Court of Appeal, Fourth District said Monday.

The appellate court reversed the lower court’s judgment in its entirety and remanded the case for a new trial. It also set aside ...