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New York Court Finds Implied Private Right of Action in Nonprofit Revitalization Act’s ‘Whistleblower Policy’

On Oct. 24, 2016, a New York court ruled that the state’s Not-for-Profit Corporation Law (“N-PCL”), as amended by the Nonprofit Revitalization Act of 2013 (the “Act”), contains an implied private right of action for failing to protect whistleblowers from retaliation. The Supreme Court, Kings County rejected the notion that the Act’s “Whistleblower Policy” requirement only permits the attorney general or the board of directors to file suit and ruled that the Act implies a private right of action.