Second Circuit Expands Scope of Dodd-Frank Anti-Retaliation Provisions, Sets up Chance for Supreme Court Review

//Second Circuit Expands Scope of Dodd-Frank Anti-Retaliation Provisions, Sets up Chance for Supreme Court Review

Second Circuit Expands Scope of Dodd-Frank Anti-Retaliation Provisions, Sets up Chance for Supreme Court Review

DAVID SMYTH / NATIONAL LAW REVIEW – Once upon a time, Daniel Berman was the finance director of Neo@Ogilvy LLC, a subsidiary of the publicly-traded WPP Group USA, Inc. He did not find a handsome prince or princess there. According to the allegations of a complaint he later filed, Berman discovered various practices at Neo that amounted to accounting fraud. He also alleged that these practices violated GAAP, Sarbanes-Oxley, and Dodd-Frank, and that he had reported these violations internally. A senior officer at Neo became angry with Berman, and he was terminated as a result of his “whistleblower” activities in April 2013. In August 2013 he reported his allegations to the WPP Audit Committee. In October 2013, after the limitations period on one of his Sarbanes-Oxley claims had ended, he provided information to the SEC. In January 2014, Berman sued Neo and WPP, alleging that he was discharged in violation of the whistleblower protection provisions of section 21F of Dodd-Frank and in breach of his employment contract.

Berman eventually provided his information to the SEC, so under Dodd-Frank Section 21F(b) he is eligible to collect an award from the Commission if that information leads to a successful enforcement action. But is Berman protected by Dodd-Frank’s anti-retaliation provisions even though he didn’t give his information to the SEC until after he was fired? Last Thursday, the Second Circuit said yes …

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2017-01-02T17:00:49+00:00September 14th, 2015|JMS in the News|0 Comments

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