Started working for company B from the denial date of comppany A extension of stay

[1217]

I'm wondering if someone has RFE on company A's h1b extension filing, and while this case was pending, his h1b transfer was approved by company B with a I-94. Later on he found out that company A's h1b extension got denied, but he still has approved h1b transfer and valid I-94 dates on company B's h1b transfer. He started working for company B from the day Company A H1B extension was denied. Is that person still considered out of status ?

Thanks In advance for your help.

[txh1b]

http://www.immihelp.com/forum/showthread.php?p=159514