Lloyd B. Chinn
Partner
Lloyd B. Chinn is a partner in the Labor & Employment Law Department and co-head of the Whistleblowing & Retaliation Group. He litigates employment disputes of all types before federal and state courts, arbitration tribunals (e.g., FINRA, JAMS and AAA), and before administrative agencies in New York and across the country. Lloyd's practice ranges from litigating compensation disputes to defending whistleblower, discrimination and sexual harassment claims. Although he represents employers in a wide range of industries, including law, insurance, health care, consulting, media, education and technology, he focuses a substantial portion of his practice on the financial services sector. He has tried to final verdict or arbitration award substantial disputes in this area.
Due to Lloyd’s litigation experience, clients regularly turn to him for advice regarding the full range of employment matters, including terminations, whistleblower policy and procedure, reductions in force, employment agreements, and employment policies. For example, in the wake of the financial crisis, he has counseled a number of firms through reductions in force and related bonus and deferred compensation disputes. Lloyd has also been retained to conduct internal investigations of allegations of workplace misconduct, including claims leveled against senior executives.
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Less than one month after issuing a $22 million award, the SEC issued another multi-million dollar whistleblower award on September 20, 2016. The SEC’s most recent award exceeded $4 million.… Continue Reading
The U.S. Commodity Futures Trading Commission (“CFTC” or the “Commission”) has proposed numerous amendments to the Whistleblower Rules found in Part 165 of the CFTC’s Regulations. The Commission seeks to enhance the process for reviewing whistleblower claims and clarify staff authority to administer the whistleblower program through the proposed amendments. Significantly, the CFTC has proposed … Continue Reading
On August 30, 2016, the SEC issued a $22 million whistleblower bounty award to an individual “whose detailed tip and extensive assistance helped the agency halt a well-hidden fraud” at the whistleblower’s employer. The Acting Chief of the SEC’s Office of the Whistleblower, credited the “company insider,” stating “[w]ithout this whistleblower’s courage, information, and assistance, it … Continue Reading
On August 16, 2016, the SEC announced that Health Net Inc. (Company) agreed to pay a $340,000 penalty to settle charges that it violated Rule 21F-17 by using severance agreements that allegedly prohibited its employees from receiving whistleblower awards from the SEC.… Continue Reading
On July 19, 2016, the SEC issued an order upholding the SEC Claims Review Staff’s (“CRS”) Preliminary Determination denying three claims for whistleblower awards. The SEC’s order explains how the claimants’ bounty requests were properly denied for failing to meet the SEC’s eligibility requirements. As we have previously discussed here, all but a few whistleblower … Continue Reading
The SEC announced today the departure of Sean X. McKessy, Chief of the SEC’s Office of the Whistleblower. Mr. McKessy was the first to hold that role and started his post in February 2011. Mr. McKessy is credited with developing and establishing the Dodd-Frank whistleblower bounty program from complaint intake to prosecution to the payment of substantial … Continue Reading
Yesterday, the SEC issued a stunning $17 million award to a former employee, whose “detailed tip” provided original information to SEC enforcement staff that “substantially advanced their investigation” into the whistleblower’s former employer. The SEC specifically credited the “company insider” with allowing enforcement staff “to conserve time and resources in the investigation, and help[ing] staff … Continue Reading
On May 31, 2016, the U.S. Securities and Exchange Commission (“SEC”) issued an order upholding the SEC Claims Review Staff’s (“CRS”) Preliminary Determination denying a claim for a whistleblower award in connection with the enforcement action SEC v. CVS Caremark Corp. Notice of Covered Action 2014-48 (“Covered Action”). This order provides insight into a whistleblower … Continue Reading
Over the past week, the U.S. Securities and Exchange Commission (“SEC”) announced two multi-million dollar awards to whistleblowers who provided the SEC with information in ongoing investigations.… Continue Reading
On March 28, 2016, the U.S. Securities and Exchange Commission (“SEC”) filed an amicus brief in a whistleblower lawsuit brought by a former in-house attorney against Vanguard Group (the “Company”). The case is Danon v. Vanguard Group, Inc., Civ. A. No. 15-6864 (E.D. Pa.).… Continue Reading
The Eastern District of Tennessee recently dismissed whistleblower claims, finding that the Plaintiff was not entitled to protection under Sarbanes-Oxley, Dodd-Frank, or the False Claims Act (“FCA”). Verble v. Morgan Stanley Smith Barney LLC et al., 3:15-cv-00074 (E.D. Tenn. Dec. 8, 2015). The court’s decision illustrates the sharp divide amongst courts regarding the scope of … Continue Reading
On November 16, 2015, the Securities and Exchange Commission’s Office of the Whistleblower (“OWB”) released its fifth Annual Report on the Dodd-Frank Whistleblower Program to Congress, which details information on OWB’s activities and bounty payouts for the fiscal year, as described in our posts on the 2012, 2013 and 2014 Annual Reports. In its 2015 … Continue Reading
Today, the Second Circuit issued its highly anticipated decision in Berman v. Neo@Ogilvy, ruling (in a 2-1 decision) that Dodd-Frank’s whistleblower protection provision applies to internal complaints (i.e., complaints that are made by employees within the company and not to the SEC). This creates a circuit split; it is directly at odds with the Fifth … Continue Reading
In response to the disagreement amongst courts regarding the scope of Dodd-Frank’s employment retaliation protections, on August 4, 2015, the SEC issued an “interpretive rule” clarifying that individuals who have not reported alleged misconduct to the SEC may nevertheless qualify as “whistleblowers”.… Continue Reading
As reported by New York Law Journal reporter Ben Bedell, the New York’s Appellate Division, First Department recently held that employees could file suit against their former employer for both sexual harassment and violation of New York’s whistleblower protection law even though the statute bars employees from seeking remedies available under any other law.… Continue Reading
On May 25, 2015, the Wall Street Journal published an article (subscription required) reporting that tipsters have found it difficult to collect financial awards from the SEC after filing whistleblower claims.… Continue Reading
The Government Accountability Project (GAP) and Zuckerman Law recently petitioned the U.S. Department of Labor (“DOL”) to issue rules and guidance prohibiting “de facto” gag clauses in settlement and severance agreements that dissuade whistleblowers from engaging in protected activities.… Continue Reading
On April 1, the Securities and Exchange Commission (SEC) announced its first settlement of an enforcement action under the SEC’s Rule 21F-17, which prohibits any person from taking “any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation, including enforcing, or threatening to enforce, a confidentiality … Continue Reading
NY Attorney General Eric Schneiderman recently announced his plans to propose legislation that would create a whistleblower incentive program at the state level. The proposal, titled the Financial Frauds Whistleblower Act, would provide monetary awards to eligible individuals who report original information about illegal activity in the banking, insurance, and financial services industries. The Financial … Continue Reading
Since the enactment of Dodd-Frank in 2010, the number of whistleblower complaints filed under the Consumer Financial Protection Act (“CFPA”) has risen significantly while the number of SOX complaints filed with OSHA has largely declined. According to data provided by OSHA, the total number of whistleblower complaints has generally increased over the past ten years. This … Continue Reading
We have seen a number of substantial whistleblower awards make headlines this year, but a recent article on nytimes.com discusses the potential downsides of government-sponsored bounty programs: rewarding whistleblowers by paying them millions of dollars for information may lead to perverse incentives by allowing wrongdoers to win significant sums of money with little government accountability … Continue Reading
As federal agencies dole out record-breaking awards to tipsters (such as the SEC’s recent $30 million award), whistleblower programs remain a topic of public interest. Earlier this month, The New York Times published an article about the growth of the whistleblower programs operated by the S.E.C., Justice Department, and I.R.S, which financially incentivize the reporting of misconduct.… Continue Reading
On November 17, 2014, the Securities and Exchange Commission’s Office of the Whistleblower (“OWB”) released its fourth Annual Report on the Dodd-Frank Whistleblower Program to Congress, which details information on OWB’s activities and bounty payouts for the fiscal year, as described in our posts on the 2012 and 2013 Annual Reports. In its 2014 report, … Continue Reading
The U.S. District Court for the Eastern District of Wisconsin in Verfuerth v. Orion Energy Systems, Inc., No. 14-cv-352 (E.D. Wis. Nov. 4, 2014) recently ruled that the Dodd-Frank whistleblower protection provision does not protect employees who only report alleged violations of the securities laws internally. In dismissing a former CEO’s whistleblower retaliation claim, the … Continue Reading
SEC Issues Another Multi-Million Dollar Whistleblower Award
By Lloyd B. Chinn, Harris Mufson and Anthony DiBenedetto on Posted in Dodd Frank, SEC
CFTC Proposes New Amendments to its Whistleblower Rules
By Lloyd B. Chinn, Harris Mufson and Esther Pak on Posted in Dodd Frank
SEC Issues $22 Million Whistleblower Award
By Lloyd B. Chinn and Anthony DiBenedetto on Posted in Dodd Frank
SEC Continues To Scrutinize Separation Agreements
By Lloyd B. Chinn, Harris Mufson and Esther Pak on Posted in Dodd Frank, SEC
SEC Affirms Denial of Bounties to Three Purported Whistleblowers
By Lloyd B. Chinn, Harris Mufson and Andrew Sherwood on Posted in SEC
SEC Whistleblower Chief Sean McKessy to Leave, Agency Announces
By Lloyd B. Chinn, Harris Mufson and Andrew Sherwood on Posted in SEC
SEC Issues $17 Million Whistleblower Award
By Lloyd B. Chinn and Kelly Anne Targett on Posted in SEC
No Bounty For Purported Whistleblower Tipster
By Lloyd B. Chinn and Christopher Bouriat on Posted in Dodd Frank, SEC
SEC Issues Two Multi-Million Dollar Whistleblower Awards
By Lloyd B. Chinn, Harris Mufson and Alex Weinstein on Posted in SEC
SEC Intervenes In Former In-House Attorney’s Whistleblower Lawsuit
By Lloyd B. Chinn, Harris Mufson and Emilie Adams on Posted in Dodd Frank, SEC
Tennessee District Court Limits Scope of Dodd-Frank Whistleblower Claim
By Lloyd B. Chinn, Harris Mufson and Natalie Phillips on Posted in Dodd Frank, False Claims Act, SOX Whistleblower Decisions
Highlights of SEC’s 2015 Annual Whistleblower Report
By Lloyd B. Chinn, Harris Mufson and Pinchos Goldberg on Posted in SEC
Second Circuit: Dodd-Frank Protects Internal Whistleblowers
By Harris Mufson, Steven J. Pearlman and Lloyd B. Chinn on Posted in Dodd Frank
SEC Issues Interpretive Rule Regarding Definition of Dodd-Frank “Whistleblower”
By Lloyd B. Chinn, Steven J. Pearlman and Harris Mufson on Posted in SEC
New York’s First Department: Harassment Claims Not Barred By Whistleblower Claim
By Lloyd B. Chinn and Harris Mufson on Posted in State-Specific Whistleblower Claims
WSJ: Whistleblowers Claim That SEC Bounty Program Lacks Transparency
By Lloyd B. Chinn and Rachel Fischer on Posted in SEC
Petition Urges DOL To Target Contractual Clauses Discouraging Whistleblowing
By Lloyd B. Chinn, Harris Mufson and Daniel Saperstein on Posted in Uncategorized
SEC Announces Enforcement Action Regarding Employee Confidentiality Agreement
By Connie Bertram, Lloyd B. Chinn, Steven J. Pearlman and Harris Mufson on Posted in SEC
NY Whistleblower Bounty Program On The Horizon?
By Lloyd B. Chinn, Harris Mufson and Allison Martin on Posted in State-Specific Whistleblower Claims
Consumer Financial Product Whistleblower Complaints Up Dramatically, SOX Complaints (with OSHA) Down
By Lloyd B. Chinn, Harris Mufson and Noa Baddish on Posted in OSHA Administration
New York Times: Bounty Programs Incentivize Wrongdoers to Collect
By Lloyd B. Chinn and Rachel Fischer on Posted in Uncategorized
New York Times Discusses the Growth of Whistleblower Programs
By Lloyd B. Chinn, Harris Mufson and Allison Martin on Posted in SEC
Highlights of SEC’s 2014 Annual Report
By Lloyd B. Chinn, Harris Mufson and Noa Baddish on Posted in SEC
Court Follows 5th Circuit Asadi Decision, Dismisses Dodd-Frank Whistleblower Claim
By Steven J. Pearlman, Lloyd B. Chinn, Harris Mufson and Noa Baddish on Posted in Dodd Frank
