SEC Whistleblower Blog

Whistleblowers Can Be Forced to Arbitrate Dodd-Frank Claims, Holds Wisconsin Federal Court

August 9, 2017
In the wake of the 2007-2008 financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, instituting myriad new financial regulations in an effort to prevent future economic disasters. One such prophylactic mechanism was to enhance protections for whistleblowers, empowering corporate...

Will Congress Repeal the Dodd-Frank Act?

August 2, 2017
Following the financial crisis of 2008, the Obama administration passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in 2010. The Act is a sweeping piece of legislation intended to regulate the American financial industry to protect consumers and to decrease the risk of another financial crisis....

Fallout Continues for Wells Fargo in Light of Widespread Consumer Finance Violations

July 25, 2017
The Occupational Safety and Health Administration (OSHA) of the U.S. Department of Labor (DOL) ordered Wells Fargo on Friday, July 21, 2017, to reinstate and pay $577,500 in back wages, damages and other fees to a former branch manager that Wells Fargo had fired after she reported fraudulent conduct by her subordinates. OSHA...

Supreme Court to Answer Whether Dodd-Frank Protects Internal Whistleblowing

July 19, 2017
In its next term, the Supreme Court will decide whether the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 protects internal whistleblowers who have not reported alleged misconduct to the U.S. Securities and Exchange Commission (SEC). This question has divided the lower courts, and the Supreme Court’s...

AG Sessions Vows to Continue Enforcement of FCPA

July 6, 2017
Attorney General Jeff Sessions recently affirmed the administration’s commitment to enforce the Foreign Corrupt Practices Act (“FCPA”), the anti-bribery law that President Donald Trump had once ridiculed as a “horrible law” before he ran for office. On April 24, Sessions addressed attendees at the Ethics and Compliance...

Ninth Circuit Whistleblower Case a Reminder that Small Changes to Strategy Can Have Big Impacts on Outcomes

June 20, 2017
In Rocheleau v. Microsemi Corp., Inc., No. 15-56029, --- F. App’x ---, 2017 WL 677563 (9th Cir. Feb. 21, 2017), the Ninth Circuit affirmed the decision of the U.S. District Court for the Central District of California to dismiss a plaintiff’s claims under the whistleblower protection provisions of the Dodd-Frank Act and the...

SEC Whistleblower Case Illustrates the Potential for Monetary Award Reductions

May 23, 2017
On February 28, 2017, the U.S. Securities and Exchange Commission (SEC) awarded a whistleblower 20 percent of any sanctions paid in connection with an SEC enforcement action brought as a result of the whistleblower’s tip.  Importantly, the SEC made clear that the whistleblower’s culpability in the underlying securities...

Will the SEC’s More Restrictive Policy for Subpoena Approval Create a Bottleneck for Whistleblower Claims?

April 18, 2017
On February 16, 2017, the U.S. Securities and Exchange Commission (SEC) announced an important policy change that reduces the number of SEC enforcement officials who can issue subpoenas and authorize SEC investigations.  Under the new policy, only the Director of the SEC’s Enforcement Division has the power to approve subpoena...

Proposed Legislation Could Weaken SEC Whistleblower Program

April 6, 2017
Under the SEC’s whistleblower program, established in 2011, a whistleblower who reports misconduct to the SEC can receive an award of between 10 percent and 30 percent of the money collected as a result of the SEC’s enforcement action. Whistleblowers who were themselves co-conspirators in the wrongdoing are eligible to receive...

Sixth Circuit Sidesteps Whether Whistleblowers Need to Tip Off Regulators to Receive Protections Under Dodd-Frank

March 20, 2017
The Sixth Circuit recently had an opportunity to weigh in on a question that has vexed federal courts for almost six years: whether the protections against retaliation provided in the Dodd-Frank Act extend to whistleblowers who did not report their concerns to the U.S. Securities and Exchange Commission (SEC).  Unfortunately...

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