Digital Realty is spending at least a $1 million on appeal to the Supreme Court to gain the right to retaliate against employees who report wrongdoing.

Rumor has it, from sources deemed reliable, that Digital Realty “sold” its access to the Supreme Court to special interest groups who want to weaken Chevron Deference.  In return for access to SCOTUS, Digital Realty is rumored to be securing long-term contracts with blue-chip companies to take space in its buildings.  If this proves to be true, what are the repercussions for executives on both sides of the transaction?

Why this rumor may be true:  Pundits say Digital Realty would have no reason to go all the way to the Supreme Court to obtain the right to retaliate against employees who report potential or actual security fraud violations internally.  Given even a few seconds of consideration, Digital’s trip to the Supreme Court makes zero sense.  This has resulted in speculation that Stein has cut a deal with companies who have been waiting take a shot at bringing down Chevron deference.  Chevron deference is an important administrative law concept promulgated by the Supreme Court in 1984.

Board of Directors:  Are you people even slightly engaged?

DLR Sanity Check:  As a data center company Digital should encourage its employees to report violations, suspicions of wrongdoing or any kind of outlier behavior which could result in a data breach to one of its customers.  Digital Realty is acting in ways that are counterintuitive to an industry that handles sensitive data for countless customers around the globe.

Only a few articles have been published.  The mainstream media has yet to say a word. If there was ever a case of the Emperor Has New Clothes, we have it here, folks.

 

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