Largely overshadowed by the rise in COVID-19 deaths and the January 6, 2021, siege on the Capitol, the Criminal Antitrust Anti-Retaliation Act of 2019 (“the Act”) became law on December 23, 2020. See 15 U.S.C. § 7a-3. The Act, which Senator Chuck Grassley sponsored, prohibits employers from retaliating against
Articles Discussing Employee Whistleblowers.
SEC Adopts Amendments to Whistleblower Program Rules
The Securities and Exchange Commission has voted to adopt numerous amendments to the rules governing its whistleblower program. See https://www.sec.gov/news/press-release/2020-219
The whistleblower program serves as a significant tool for the Commission to encourage individuals to come forward with information regarding suspected security fraud. As set forth in the SEC’s press
SEC Amends Whistleblower Award Program Rules
With a vote split down party lines, on September 23, 2020, the Securities and Exchange Commission (SEC) approved several amendments to rules governing its Whistleblower Program. The purpose of the amendments, according to the SEC, is “to provide greater clarity to whistleblowers and increase the program’s efficiency and transparency.”1
SEC Announces Largest Whistleblower Award of 2020 – Over $27 Million
The Securities and Exchange Commission (the “SEC”) announced a whistleblower award of more than $27 million, representing the largest SEC whistleblower award of 2020. This is the sixth largest award overall since the inception of the SEC whistleblower program in 2011.
Congress established the whistleblower program to incentivize whistleblowers to
Congress Considers Proposed Protections for Intelligence Community Whistleblowers
The United States House Oversight and Reform Subcommittee on Government Relations is considering proposed changes to protections available to U.S. Intelligence Community (IC) whistleblowers.
The Subcommittee’s January 28, 2020, public hearings received testimony from David K. Colapinto, National Whistleblower Center, Glenn A. Fine, U.S. Department of Defense, Elizabeth Hempowicz, Project
Dodd-Frank Whistleblower Claims are Arbitrable, Second Circuit Holds
In a win for employers, the Second Circuit Court of Appeals recently held that whistleblower claims under the Dodd-Frank Act are arbitrable. Daly v. Citigroup Inc., 939 F.3d 415 (2d Cir. 2019). The Second Circuit also held that a plaintiff’s failure to exhaust administrative remedies related to a Sarbanes-Oxley Act
Over $2 Billion in Sanctions Ordered by the U.S. Securities and Exchange Commission
In its 2019 Annual Report to Congress, the U.S. Securities and Exchange Commission (“SEC” or “Commission”) whistleblower program announced a “momentous milestone”: The SEC has ordered over $2 billion in sanctions since the inception of the whistleblower program.
The Report outlined other key statistics from FY 2019. Approximately $60 million
Whistleblower Rights in Today’s Evolving Federal Statutory Landscape
All viable whistleblower cases arise from allegations of wrongdoing serious enough to run afoul of some statute or rule. Common issues in every whistleblowing case include:
Whistleblower Protections and Retaliation Risks
Whistleblower issues are in the news, mainly because a U.S. intelligence officer recently filed a complaint against President Trump under the Intelligence Community Whistleblower Protection Act (ICWPA). The complaint, which asserts that the president engaged in improper conduct in interacting with the government of Ukraine, has led to an impeachment inquiry. The ICWPA was enacted to provide intelligence community employees a safe process to report alleged wrongdoing.
Record High Awards and Supreme Court Decision Further Incent Potential Whistleblowers to Report Conduct to the SEC
On March 19, 2018, the Securities and Exchange Commission (“SEC”) announced its highest ever Dodd-Frank Act (“DFA”) bounty awards to three whistleblowers. These SEC awards represent a new milestone in the SEC’s ongoing efforts to incentivize would-be whistleblowers to report unlawful conduct directly to the Commission. Two whistleblowers will divide a nearly $50 million award and a third whistleblower received $33 million; both awards shattered the previous high award of $30 million and continue the SEC’s trend of issued rising awards.
Retaliation Plaintiff Not a Covered Whistleblower under Plain Reading of Dodd-Frank Act, Court Rules
A former employee who failed to show he reported alleged securities law violations to the Securities and Exchange Commission (SEC), as required under the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA), cannot claim his former employer unlawfully retaliated against him, federal Judge William J. Martini has ruled. Price v. UBS Financial Services, Inc., No. 2:17-01882 (D. N.J. Apr. 19, 2018).
Supreme Court Limits Dodd-Frank Retaliation Protections to Employees who Blow the Whistle to the SEC
On February 21, 2018, the U.S. Supreme Court issued its decision in Digital Realty Trust, Inc. v. Somers, Case No. 16–1276, resolving a circuit split on whether the Dodd-Frank Act (“Dodd-Frank” or the “Act”) requires employees to report externally to the SEC in order to be protected by the Act’s anti-retaliation provision.
U.S. Supreme Court Narrows Dodd-Frank Act Whistleblower Protections
The anti-retaliation provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 protects only employees who complain directly to the Securities and Exchange Commission (SEC), the U.S. Supreme Court has held in a unanimous decision. Digital Realty Trust, Inc. v. Somers, No. 16-1276 (Feb. 21, 2018).
New Chairman and Board Members Appointed to the SEC Board Created by the Sarbanes-Oxley Act of 2002
The Securities and Exchange Commission recently announced the appointment of William D. Duhnke III as Chairman and J. Robert Brown, Kathleen M. Hamm, James G. Kaiser, and Duane M. DesParte as board members of the Public Company Accounting Oversight Board (PCAOB). The Sarbanes-Oxley Act of 2002 established the PCAOB to oversee public companies and broker-dealers. The PCAOB’s activities include conducting inspections and pursuing disciplinary actions.
DOL Flip-Flop: SOX’s Anti-Retaliation Provisions Apply to Overseas Conduct After All
In a late-August decision with potentially far-reaching implications for foreign and multinational employers, the United States Department of Labor Administrative Review Board (ARB) held that the Sarbanes-Oxley Act’s (SOX) whistleblower provisions have extraterritorial application—in apparent contradiction of appellate court and indeed prior ARB case law.
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