Blog Archives

Ninth Circuit Widens Split on Dodd-Frank Whistleblower Provisions

The Ninth Circuit joined the Second Circuit in concluding that the Dodd-Frank whistleblower provisions protect from retaliation those who report internally at the company but not to the SEC, despite the literal language of the statute. In reaching this conclusion

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SEC Settles Another Action Involving Whistleblowers

The SEC has brought a series of actions concerning whistleblowers. A number of those cases center on provisions in severance agreements which either directly preclude being a whistleblower required the departing employee to maintain the confidentiality of firm information or

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SEC – BlackRock Settle Whistleblower Claim

The protection of whistleblowers has been a recurrent theme in recent SEC enforcement actions. The agency has brought a series of actions designed to protect the right of employees to report wrong doing to the Commission unimpeded by their employer.

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SEC Sanctions Another Firm For Restricting Whistleblowers

Whistleblowers are an important source of information for the Commission’s enforcement program. This is reflected by the periodic monetary awards handed out by the agency. It is also evidenced by the increasing number of actions brought by the SEC to

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SEC Files Another Action To Protect Whistleblowers

Undermining the protections of Exchange Act Section 21E which protect whistleblowers was the subject of a recent, settled enforcement action. Now the Commission has brought a similar action, again centered on provisions in severance agreements that might impede former employees

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Severance Agreements Violate SEC Whistleblower Provisions

The SEC has a robust whistleblower program which is considered an important adjunct to its enforcement efforts. To that end the Commission has participated in whistleblower cases as an amicus and brought actions regarding restrictions on the ability of employees

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Whistleblowers: No Reasonable Belief of Violation, No Protection

The SEC has been touting the large cash awards it has been handing out to whistleblowers. The agency views whistleblowers as a key source of potential information about wrong-doing which can give them tips and facilitate investigations. As part of

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The SEC, Second Circuit, and Whistleblowers: Searching For Ambiguity

The SEC’s interpretation of the Dodd-Frank whistleblower provisions prevailed in a recent Second Circuit decision, creating a circuit split that could be heading for the Supreme Court. Specifically, the Circuit Court deferred to the SEC’s interpretation of the provisions under

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The SEC’s New Whistleblower Action: Is It Counterproductive?

The SEC brought its first enforcement action centered on corporate restrictions which could impact employee whistleblowers, deterring them from reporting to the agency. Specifically, the Commission alleged that a policy at KBR, Inc. which precluded the disclosure of information by

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This Week In Securities Litigation (Week ending April 3, 2015)

The Second Circuit rejected a petition for rehearing by the U.S. Attorney’s Office in the Newman case. There the Court reversed and dismissed the insider trading actions against two traders based on the failure of the court to provide the

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SEC: Whistleblower Protections Extend To Those Who Report Internally

A critical component of the SEC’s whistleblower program is the anti-retaliatory provisions of Exchange Act Section 21F, added to the statute by the Dodd-Frank Act. To implement that provision the Commission promulgated two rules. The first, Exchange Act Rule 21F-2(b)(2)

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This Week In Securities Litigation (Week ending June 20, 2014)

A review of SEC and securities enforcement litigation this week.

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This Week In Securities Litigation (Week ending March 7, 2014)

A review of SEC and securities enforcement litigation this week.

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Part VIII: How Corporate Officials Can Get A Good Night’s Sleep Despite Current SEC Enforcement Trends

This is the eighth and concluding segment in a series discussing new trends in SEC enforcement which impact corporate directors and officers and steps that can be taken to avoid future liability. Whistleblowers In the future, the efforts of enforcement

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Morrison, Whistleblowers And Limits On Federal Authority

The fundamental question in National Federation of Independent Business v. Sebelius, Secretary of HHS, No. 11-393 (S.Ct. June 28, 2012), which addressed the constitutionality of the Affordable Case Act, was the scope of federal power within the United States. There

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THIS WEEK IN SECURITIES LITIGATION (August 12, 2011)

The Commission brought a significant market crisis case this week, centered on the sale of complex, high risk financial instruments to unsophisticated school districts which ended in millions of dollars in losses. Insider trading was a key focus for the

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THIS WEEK IN SECURITIES LITIGATION (May 27, 2011)

The Commission issued it controversial new Dodd-Frank whistleblower rules by a 3 to 2 vote this week. Many critics claim the rules will undermine corporate compliance programs. Insider trading is the key theme this week. Insider trading on Capitol Hill

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