SEC Whistleblower Blog
ARB Says SOX Applies Extraterritorially in Government Contractor Whistleblower Claim
September 12, 2017
On Aug. 29, 2017, the Administrative Review Board (ARB or “the Board”) of the U.S. Department of Labor (DOL) issued an important decision regarding the extraterritorial application of the anti-retaliation provision of the Sarbanes-Oxley Act of 2002 (SOX). In Blanchard v. Exelis Sys. Corp., ARB No. 15-031, ALJ No. 2014-SOX-20 (...
Recent Decisions Clarify the Scope of Dodd-Frank Protections
September 6, 2017
In July, two federal courts threw out whistleblower suits, both ruling that the plaintiffs did not qualify as whistleblowers under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). The question before the courts in both cases was whether the Dodd-Frank Act covered the disclosures made by the...
Whistleblowers Can Be Forced to Arbitrate Dodd-Frank Claims, Holds Wisconsin Federal Court
August 9, 2017
In the wake of the 2007-2008 financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, instituting myriad new financial regulations in an effort to prevent future economic disasters. One such prophylactic mechanism was to enhance protections for whistleblowers, empowering corporate...
Will Congress Repeal the Dodd-Frank Act?
August 2, 2017
Following the financial crisis of 2008, the Obama administration passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in 2010. The Act is a sweeping piece of legislation intended to regulate the American financial industry to protect consumers and to decrease the risk of another financial crisis....
Fallout Continues for Wells Fargo in Light of Widespread Consumer Finance Violations
July 25, 2017
The Occupational Safety and Health Administration (OSHA) of the U.S. Department of Labor (DOL) ordered Wells Fargo on Friday, July 21, 2017, to reinstate and pay $577,500 in back wages, damages and other fees to a former branch manager that Wells Fargo had fired after she reported fraudulent conduct by her subordinates. OSHA...
Supreme Court to Answer Whether Dodd-Frank Protects Internal Whistleblowing
July 19, 2017
In its next term, the Supreme Court will decide whether the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 protects internal whistleblowers who have not reported alleged misconduct to the U.S. Securities and Exchange Commission (SEC). This question has divided the lower courts, and the Supreme Court’s...
AG Sessions Vows to Continue Enforcement of FCPA
July 6, 2017
Attorney General Jeff Sessions recently affirmed the administration’s commitment to enforce the Foreign Corrupt Practices Act (“FCPA”), the anti-bribery law that President Donald Trump had once ridiculed as a “horrible law” before he ran for office. On April 24, Sessions addressed attendees at the Ethics and Compliance...
Ninth Circuit Whistleblower Case a Reminder that Small Changes to Strategy Can Have Big Impacts on Outcomes
June 20, 2017
In Rocheleau v. Microsemi Corp., Inc., No. 15-56029, --- F. App’x ---, 2017 WL 677563 (9th Cir. Feb. 21, 2017), the Ninth Circuit affirmed the decision of the U.S. District Court for the Central District of California to dismiss a plaintiff’s claims under the whistleblower protection provisions of the Dodd-Frank Act and the...
SEC Whistleblower Case Illustrates the Potential for Monetary Award Reductions
May 23, 2017
On February 28, 2017, the U.S. Securities and Exchange Commission (SEC) awarded a whistleblower 20 percent of any sanctions paid in connection with an SEC enforcement action brought as a result of the whistleblower’s tip. Importantly, the SEC made clear that the whistleblower’s culpability in the underlying securities...
Will the SEC’s More Restrictive Policy for Subpoena Approval Create a Bottleneck for Whistleblower Claims?
April 18, 2017
On February 16, 2017, the U.S. Securities and Exchange Commission (SEC) announced an important policy change that reduces the number of SEC enforcement officials who can issue subpoenas and authorize SEC investigations. Under the new policy, only the Director of the SEC’s Enforcement Division has the power to approve...
