Archives: SEC

Subscribe to SEC RSS Feed

Circuit Split Over Protection Afforded By Dodd-Frank Whistleblower Provision Widens

by Joseph C. Toris and Benjamin L. Rouder In Somers v. Digital Realty Trust, 15-17352 (9th Cir. March 8, 2017), a split Ninth Circuit Court of Appeals widened an existing circuit court split by ruling that Section 21F of the Dodd-Frank Act (“DFA”) protects individuals who make internal disclosures as well as those who make … Continue Reading

U.S. Securities and Exchange Commission Surpasses $100 Million in Awards Through Whistleblower Program

On August 30, 2016, the U.S. Securities and Exchange Commission (“SEC”) announced that it surpassed the $100 million mark in monetary awards for whistleblowers. Through the enactment of the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), Congress established the whistleblower program to incentivize whistleblowers … Continue Reading

SEC Announces Third-Highest Award Ever to Whistleblower

Written by Richard C. Paul On May 17, 2016, the Securities and Exchange Commission (SEC) announced that it would award between $5 million and $6 million, the third-highest award ever, to a whistleblower who provided information detailing securities violations committed by the whistleblower’s former employer. Under the so-called “bounty” provision of the Dodd-Frank Act, the … Continue Reading

Split Appeals Court Decision May Set Stage for Supreme Court Review of Dodd-Frank Whistleblower Provision

A federal appeals court ruling on the Dodd-Frank Wall Street Reform and Consumer Protection Act (“DFA”) may prompt U.S. Supreme Court review as to when an employee whistleblower is entitled to the benefits of the anti-retaliation provisions of the DFA. In a two-to-one decision, the U.S. Court of Appeals for the Second Circuit, in New … Continue Reading

SEC Action Impacts Employer Confidentiality Agreements

The Securities and Exchange Commission recently settled its first administrative proceeding and enforcement action under the Dodd-Frank Act involving an employer’s use of a form confidentiality agreement.  The SEC found the agreement, which prohibited employees from discussing aspects of internal investigations without prior law department authorization, could interfere with the employee’s ability to communicate with the Commission regarding … Continue Reading

Does Dodd-Frank Act Protect Whistleblower Who Did Not Report to SEC?

Whether a claimant qualifies as a whistleblower under the  language of the Dodd-Frank Act when he  does not complain directly to the SEC is  the question the Eighth  Circuit Court of Appeals in St. Louis may attempt to answer. Securities clearing and settlement firm COR Clearing LLC has appealed a Nebraska District Court’s denial of … Continue Reading

SEC OBTAINS CEASE AND DESIST ORDER, FINE REGARDING FOREIGN CORRUPT PRACTICES ACT VIOLATIONS BY GUN MAKER

  The Securities and Exchange Commission (“SEC”) has announced that it has entered into a cease and desist order with gun manufacturer Smith & Wesson for violations of the Foreign Corrupt Practices Act (“FCPA”) by allegedly bribing representatives of international buyers with gifts of products or money, in the hope of obtaining sales contracts for … Continue Reading

Dodd-Frank Whistleblower Provision Proving Fertile Breeding Ground for Whistleblowers

In a securities filing on May 1, 2014, it was announced that Avon Products, Inc. had reached a $135 million settlement with the Securities and Exchange Commission (SEC) and the Department of Justice. The $135 million in fines will be paid to the SEC and the DOJ by Avon to resolve violations under the Foreign … Continue Reading

SEC Argues for Broad Construction of Dodd-Frank Act Whistleblower Anti-Retaliation Provision

In the wake of recent SEC pronouncements about huge numbers of whistleblower complaints in the pipeline, one of the most hotly contested issues under the Dodd-Frank Wall Street Reform and Consumer Protection Act “Dodd Frank Act”) has been the question of whether the Dodd Frank Act’s whistleblower anti-retaliation provision protects only those individuals who report … Continue Reading

SEC Whistleblower Awarded Record $14 Million

On October 1, the Securities and Exchange Commission (SEC) announced that an unidentified whistleblower, “who voluntarily provided original information” to the SEC “that led to the successful enforcement” action against an undisclosed company, has been awarded a record $14 million.  According to the SEC, the award “recognizes the significance of the information that the Claimant … Continue Reading
LexBlog