MILWAUKEE — A federal appeals court has ruled in favor of S.C. Johnson & Son Inc. in a dispute with a former employee.

Ex-employee Michael DeGuelle claims he was fired in 2009 after discovering the company committed tax fraud. The company denied the allegations and the two sued each other. A state court found there was no tax fraud in a decision upheld on appeal in June.

DeGuelle also filed a federal lawsuit. The 7th U.S. Circuit Court of Appeals said Thursday that since his claims grew out of the tax fraud allegations and the state court determined no fraud existed, his case was groundless.

DeGuelle said Friday he disagrees with the decision and could appeal to the U.S. Supreme Court or file a new lawsuit.

Racine-based S.C. Johnson makes cleaning supplies.