Proskauer Whistleblower Defense

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Proskauer Whistleblower Defense

SEC Awards Whistleblower More Than $10 Million

By Steven J. Pearlman & Pinchos Goldberg

September 17, 2020

On September 14, 2020, the SEC announced payment of more than $10 million to a whistleblower who provided original information to the SEC that led to a successful enforcement action. (The order granting the award can be accessed here.) In explaining the reason for its award determination, the SEC noted that the whistleblower had “provided extensive and ongoing assistance to the investigative team over the course of the investigation, including identifying witnesses and helping…

Proskauer Whistleblower Defense

Third Circuit Confirms Limits on Scope of Protected Activity Under SOX

By Steven J. Pearlman, Pinchos Goldberg & Scott Tan

August 18, 2020

On July 16, 2020, the Third Circuit affirmed the dismissal of a former IT analyst’s whistleblower retaliation claim, holding that he lacked an objectively reasonable belief that his complaints implicated one of the enumerated forms of fraud in the SOX whistleblower provision. Reilly v. GlaxoSmithKline, LLC, No. 19-cv-2897. Background Plaintiff was an IT analyst for the Company, where his duties included maintaining the Company’s AS/400 computer servers and addressing performance and security issues…

Proskauer Whistleblower Defense

ARB Denies Equitable Tolling of 180-Day Statute of Limitations Under SOX

By Lloyd B. Chinn, Pinchos Goldberg & Scott Tan

August 5, 2020

On June 29, 2020, the Administrative Review Board (“ARB”) upheld the dismissal of a whistleblower retaliation complaint under Section 806 of the Sarbanes-Oxley Act (“SOX”) for failure to file within the 180-day statutory deadline. Xanthopoulos v. Marsh & McLennan Companies, Inc., ARB Case No. 2019-0045 (June 29, 2020). Background Complainant was an employee of Mercer Investment Consulting, an operating company owned by Marsh & McLennan Companies. Complainant was fired on October 3, 2017, and…

Proskauer Whistleblower Defense

ARB Rules That Complaints about Theoretical Violations are not Protected Whistleblowing Activity under Dodd-Frank

By Lloyd B. Chinn, Pinchos Goldberg & Heylee Bernstein

July 20, 2020

On June 18, 2020, the U.S. Department of Labor Administrative Review Board (“ARB”) held that a complaint about a theoretical violation of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010 (“Dodd-Frank”) does not constitute protected activity under the whistleblower provisions of that statute. Bryan Horn v. University First Federal Credit Union, ARB Case No. 18-0033 (June 18, 2020). Background University First Federal Credit Union (“UFFCU”) hired Complainant as a…

Proskauer Whistleblower Defense

Texas District Court Dismisses SOX Whistleblower Claim for Lack of Employer-Employee Relationship

By Lloyd B. Chinn, Pinchos Goldberg & Alex Downie

June 24, 2020

On June 12, 2020, the U.S. District Court for the Southern District of Texas granted a motion to dismiss in favor of the defendant in a SOX whistleblower retaliation case, finding that the alleged whistleblower – a contractor and advisory board member of the defendant – was not an employee of the defendant, as required by SOX. Moody v. American National Insurance Co., No. 3:19-cv-00206 (S.D. Tex. June 12, 2020). Background Plaintiff brought…

Proskauer Whistleblower Defense

CFTC Issues $6 Million Whistleblower Award

By Harris Mufson & Scott Tan

June 19, 2020

On June 9, 2020, the U.S. Commodity Futures Trading Commission (CFTC) announced a $6 million whistleblower award to an individual under its Dodd-Frank whistleblower program. The individual was rewarded for voluntarily providing specific, credible, and timely information that led the CFTC to bring a successful enforcement action. The Director of the Whistleblower Office, Christopher Ehrman, said in the press release that the award reflects the impact of whistleblowers on the Agency’s enforcement program, noting “whistleblowers…

Proskauer Whistleblower Defense

COVID-19 Whistleblower Protection Bill Introduced Into Congress

By Steven J. Pearlman, Lloyd B. Chinn, Pinchos Goldberg & Tony S. Martinez

June 18, 2020

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On June 15, 2020, Senator Kamala Harris and Representatives Jackie Speier and Jamie Raskin introduced the COVID-19 Whistleblower Protection Act (the “Act”), which seeks to provide protections for employees who blow the whistle on employers who misuse federal funds received through various measures enacted by Congress aimed at mitigating the impact of the coronavirus pandemic. (The text of the proposed bill can be found here.) Many of the whistleblower protections in the Act echo…

Proskauer Whistleblower Defense

SEC Announces Record-Breaking $50 Million Award to Whistleblower

By Lloyd B. Chinn, Pinchos Goldberg & Dominique Kilmartin

June 5, 2020

On June 4, 2020, the SEC announced a nearly $50 million award to a whistleblower who provided the SEC with detailed, first-hand information that assisted the agency in bringing a successful enforcement action. While tipsters have previously shared a $50 million award, this is the largest amount ever awarded to a single whistleblower under the SEC’s whistleblower program and far surpasses the next-largest individual award of $39 million in September 2018. Jane Norberg, Chief…

Proskauer Whistleblower Defense

Reuters: SEC Eager to Prosecute COVID-19 Misconduct Amid Flurry of Whistleblower Complaints

By Harris Mufson, Pinchos Goldberg & Dominique Kilmartin

May 28, 2020

A Reuters article published on May 26, 2020 reports that the SEC has experienced an uptick in complaints amid the COVID-19 pandemic. According to the article, the SEC received about 4,000 complaints from mid-March through mid-May – a 35% increase from the previous year. With an abundance of tips at its disposal, the SEC is eager to investigate and prosecute COVID-19 related misconduct. The article discusses how the COVID-19 pandemic has incited a wave of…

Proskauer Whistleblower Defense

Pennsylvania Magistrate Judge Recommends Dismissal of SOX Whistleblower Claim for Lack of Protected Activity

By Steven J. Pearlman, Pinchos Goldberg & Heylee Bernstein

May 13, 2020

On May 5, 2020, a Magistrate Judge in the U.S. District Court for the Western District of Pennsylvania issued a report and recommendation recommending that a defendant-employer’s motion for summary judgment dismissing a SOX whistleblower retaliation claim be granted, finding that the plaintiff had not engaged in protected activity. Wutherich v. Rice Energy Inc, No. 18-cv-00200. Background Plaintiff was a manager at the defendant-employer, an energy company involved in fracking. In July 2016, Plaintiff…

Proskauer Whistleblower Defense

Blog Authors

SEC Awards Whistleblower More Than $10 Million

Third Circuit Confirms Limits on Scope of Protected Activity Under SOX

ARB Denies Equitable Tolling of 180-Day Statute of Limitations Under SOX

ARB Rules That Complaints about Theoretical Violations are not Protected Whistleblowing Activity under Dodd-Frank

Texas District Court Dismisses SOX Whistleblower Claim for Lack of Employer-Employee Relationship

CFTC Issues $6 Million Whistleblower Award

COVID-19 Whistleblower Protection Bill Introduced Into Congress

SEC Announces Record-Breaking $50 Million Award to Whistleblower

Reuters: SEC Eager to Prosecute COVID-19 Misconduct Amid Flurry of Whistleblower Complaints

Pennsylvania Magistrate Judge Recommends Dismissal of SOX Whistleblower Claim for Lack of Protected Activity

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