What You Need to Know About the New SEC and Dodd Frank Whistleblower Protection-Part 7

Posted on December 11th, 2017 at 6:54 PM
What You Need to Know About the New SEC and Dodd Frank Whistleblower Protection-Part 7

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the seventh in a series of posts discussing whistleblower protection. This post will discuss the different potential payouts for individuals who have filed SEC whistblower claims.

To begin, under Dodd-Frank and Sarbanes-Oxley, the SEC allows victims to recover the following remedies: double back pay with interest; attorneys’ fees; other special damages; and traditional compensatory damages. (See 15 U.S.C. § 78(u)-6(h)(1)(C) and 15 U.S.C. § 78(u)-6(h)(1)(C)).

Furthermore, both Dodd-Frank and Sarbanes-Oxley also allow for a “reinstatement remedy”, which requires liable companies to rehire, to the same position, a fired, demoted or suspended whistleblower employee. However, recently courts have permitted the victimized employee to forego rejoining their previous firm, and instead accept from their former employer, payment to compensate for lost future earnings. (See, e.g., Jones v. SouthPeak Interactive Corp. of Delaware, 986 F. Supp. 2d 680 (E.D. Va. 2013).

Additionally, although punitive damages are unavailable under Sarbanes-Oxley and Dodd-Frank, employees can add supplemental state law claims which allow for punitive damages to be awarded. (See, e.g. Wadler v. Bio-Rad Labs, Inc., No. 15-CV-02356-JCS, ECF No. 229 (N.D. Cal. Feb. 14, 2017, which awarded $5 million in punitive damages via the California wrongful discharge tort, along with the standard SEC remedies).

Lastly, the SEC also has the ability to fine the wrongdoing employer in a whistblower claim. For instance, in September 2016, the SEC levied a $500,000 penalty against a company for unlawfully firing a whistleblower. (See supra, SEC Press Release No. 2016-204).

Overall, it is important for whistleblowers to seek legal counsel and allow an attorney to determine applicable damages on a case by case basis.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, James Eccleston, Eccleston Law LLC

Return to Archive

TESTIMONIALS

Previous
Next

Hiring Eccleston Law has been one of the best career decisions I have made and this "investment" to maintain my sterling regulatory record has been returned many times over.  If you are in a situation where you've been unfairly accused, don't hesitate to talk with Eccleston Law. They are the best.

Thomas C.

LATEST NEWS AND ARTICLES

September 26, 2023
Looming Real Estate Crisis Poses Risk to U.S. Banking Sector

With the current downturn in the commercial real estate market, trillions of dollars in loans and investments pose a looming threat to both the banking industry and potentially the broader economy.

September 25, 2023
Legal Challenges Over 'Money-for-Nothing' Payments Gain Momentum

Apollo Global Management and Carlyle Group, two major private equity firms, now face investor lawsuits regarding payments made to insiders without apparent justification.

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.