On September 23, 2020, by a vote of 3 to 2, the U.S. Securities and Exchange Commission announced the adoption of a final rule implementing several changes to its whistleblower program, citing the need to “provide greater clarity to whistleblowers
Proskauer Whistleblower Defense
The Proskauer Whistleblower Defense blog, published by Proskauer Rose LLP, focuses on legal developments and case law related to whistleblower protections and retaliation claims. It covers topics such as statutory frameworks including the Sarbanes-Oxley Act (SOX), Dodd-Frank Act, Anti-Money Laundering Act (AMLA), Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), and the Federal Railroad Safety Act (FRSA). The blog discusses court rulings on procedural requirements, administrative prerequisites, burden-shifting frameworks, and enforcement challenges in whistleblower litigation. It also highlights significant settlements and strategic considerations for employers and employees involved in whistleblower disputes.
Latest from Proskauer Whistleblower Defense - Page 9
Third Circuit Confirms Limits on Scope of Protected Activity Under SOX
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…
ARB Denies Equitable Tolling of 180-Day Statute of Limitations Under SOX
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…
ARB Rules That Complaints about Theoretical Violations are not Protected Whistleblowing Activity under Dodd-Frank
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…
Texas District Court Dismisses SOX Whistleblower Claim for Lack of Employer-Employee Relationship
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…
CFTC Issues $6 Million Whistleblower Award
By Harris Mufson & Scott Tan
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…
COVID-19 Whistleblower Protection Bill Introduced Into Congress
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…
SEC Announces Record-Breaking $50 Million Award to Whistleblower
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…
Reuters: SEC Eager to Prosecute COVID-19 Misconduct Amid Flurry of Whistleblower Complaints
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…