Second Circuit to Supreme Court on Whistleblowers: Your Turn

//Second Circuit to Supreme Court on Whistleblowers: Your Turn

Second Circuit to Supreme Court on Whistleblowers: Your Turn

RICHARD J.L. LOMUSCIO / NATIONAL LAW REVIEW – The U.S. Court of Appeals to the Second Circuit’s recent decision holding that Dodd-Frank’s “whistleblower” anti-retaliation protections apply to employees who are dismissed after reporting alleged violations internally but before alerting the Securities and Exchange Commission (the “Commission”) creates a Circuit spilt and sets up a potential statutory-interpretation showdown in the U.S. Supreme Court. Berman v. Neo@Ogilvie LLC & WPP Group USA, Inc., slip op. at 2 (2d Cir. Sept. 10, 2015).

The Second Circuit’s decision focuses on the conflict between Dodd-Frank’s definition of “whistleblower” as “any individual who provides . . . information relating to a violation of the securities laws of the Commission,” 15 U.S.C. § 78u-6(a)(6) (emphasis added), and the retaliation protection provision of the same statute which through incorporation of the Sarbanes-Oxley Act provides a cause of action to a “whistleblower” terminated after reporting alleged violations to his or her employer. 15 U.S.C. § 78u-6(h)(1)(A)(iii). The district court had dismissed a lawsuit brought by a former Neo@Ogilvie financial reporting director, Daniel Berman, who was terminated after informing his supervisors of alleged accounting fraud but six months before the Commission was alerted to any purported bad conduct …

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2017-01-02T17:00:48+00:00September 14th, 2015|JMS in the News|0 Comments

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