Posted in Corporate Crimes/Insider Trading/Whistleblowing

Key federal court broadens whistleblower protection

In the Somer case, the vice president of a public company reported possible securities law violations to senior management.

One of the acts conferring Dodd-Frank whistleblower protection under Section 21F is making the disclosures required by SOX, which protects those reporting securities laws violations through internal channels.

Yet  Section 21F also defines the word “whistleblower” to require a person to provide information about a violation to the SEC,  and Somers had not done that before being fired.

Therefore, the issue was whether the fact that the plaintiff did not report to the SEC meant he was not a “whistleblower” and hence could not sue under Dodd-Frank.

Source

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Junior Legal Counsel with a remarkable lust for legal and business knowledge

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