What You Need to Know About the New SEC and Dodd Frank Whistleblower Protection

Posted on November 20th, 2017 at 5:55 PM
What You Need to Know About the New SEC and Dodd Frank Whistleblower Protection

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the first in a series of posts discussing whistleblower protection.

In early 2018, the U.S Supreme Court is set to decide a significant whistleblower retaliation case in Digital Realty Tr. Inc. v. Somers, 137 S. Ct. 2300 (June 26, 2017) (No-16-1276). This upcoming decision likely will resolve a federal court circuit split. The decision also will impact the relationship between companies and their employees as to whether the anti-retaliation provision for “whistleblowers” in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 extends to individuals who have not reported the alleged misconduct to the SEC.

The pending Supreme Court decision comes at a time when SEC whistleblower claims have become a prevalent tool used by employees to hold their employers accountable. For instance, the SEC recently filed a whistleblower retaliation case against a public company for firing an employee who questioned an internal accounting policy (see SEC Press Release No. 2016-270), and a federal jury awarded the fired general counsel of another public company nearly $11 million for raising concerns regarding potential Foreign Corrupt Practices Act violations (see Jury Verdict, Wadler v. Bio-Rad Labs. Inc., No. 15-CV-02356-JCS, ECF No. 223).

Furthermore, SEC whistleblower claims have demonstrated that internal whistleblower disputes are matters that require lawyers to specialize in employment law as well as federal securities law. Moreover, the Dodd-Frank Act of 2010 has blended the legal areas of securities law and employment law because employers are now on the hook when dealing with their federally protected “whistleblower” employees.

Therefore, because the arena has drastically changed in the last decade in the context of the employer-employee relationship under Dodd-Frank, Eccleston Law, LLC will provide additional guidance in subsequent posts.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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