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Stories of Interest
- Inside Scaramucci’s Extreme Loyalty to Trump – William Cohan
- Who President Trump Can Pardon, and Who He Can’t
- Ex-UBS Compliance Officer, Day Trader Deny Insider Trading
- Private Equity’s Big Bets on Financial Tech
- Trump Reportedly Floats Making Rudy Giuliani Attorney General
- Mastercard Wins Dismissal of $18 Billion Class Action Suit
- Jailed Schroders Trader Also to Pay $456K for His 'Criminal Lifestyle'
- Raymond Lucia, Ex-Radio Host Asks U.S. Top Court to Rule On Administrative Law Judges
- As Trump Administration Circles the Drain, Anthony Scaramucci Finally Lands West Wing Job
- Internal Power Struggle Rattles Guggenheim Partners
- Why Most People Will Never Be Successful
- Top Deutsche Bank Trader Leaves After Risky Bets Led to $60Mn Loss
- Bank of America Picks Dublin as EU Hub Post Brexit
- E*Trade Rises 4% as Q2 Earnings Beat Estimates
- I Scream, You Scream, FINRA Screams For Ice Cream ... or ... FINRA Deep-Freezes Broker
- Senate Panel OK's David Kautter, Trump Pick for Top Treasury Tax Job
- OJ Simpson Granted Parole After 9 Years in Prison
- PayPal to Partner with JPMorgan
- BNY Mellon Beats on Q2 Earnings as Revenues Improve
- I Scream, You Scream, FINRA Screams for Ice Cream ... or ... FINRA Deep-Freezes a Broker
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NEWSLETTERS & ALERTS
Rules & Regulations
Does Dodd-Frank Protect Whistleblowers Who Never Report to SEC?
Before breaking for summer recess, the U.S. Supreme Court announced that it will hear a case involving Dodd-Frank whistleblower protections. Digital Realty Trust, a real estate investment trust company, is appealing a lower court ruling in favor of an executive fired by the SF-based company after he complained internally about alleged misconduct by his supervisor. The employee never reported the matter to the SEC.
The scope of the SEC whistleblower rules, which were adopted in 2011 under Dodd-Frank, are "on trial" in this case. Those rules: (i) prohibit corporate employers from retaliating in any way against whistleblowers who try to report allegations of securities law; and, (ii) give the SEC the power to offer monetary awards to whistleblowers whose tips lead to successful enforcement actions.
IF THE SUPREME COURT RULES IN FAVOR OF THE COMPANY. Digital Realty Trust argues the anti-retaliation protections do not apply to people who fail to report their allegations to the SEC because the law defines a whistleblower as a person who reports possible securities violations to the SEC. A decision in favor of Digital Realty Trust could deter people from reporting misconduct internally, according to Jordan Thomas, a partner at Labaton Sucharow who represents whistleblowers.
"I think both corporate whistleblowers and corporations should hope that the Supreme Court finds that internal reporting is sufficient to have the anti-retaliation protections because if not, sophisticated corporate whistleblowers will bypass internal reporting systems and report directly to the SEC."