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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We previously reported in March and last October on a whistleblower litigation brought by Charles Erhart, a former Bank of Internet Holding, Inc. (BofI) internal auditor. On December 3, 2015, in a separate action, the shareholders of BofI brought a derivative suit, based in part on the facts of the whistleblower case, claiming BofI’s board of directors … Continue Reading
The U.S. District Court for the Southern District of New York recently granted a motion for summary judgment against a Plaintiff claiming retaliatory blacklisting under SOX, holding that a former employer’s policy of refusing to conduct business with plaintiff was not actionable under the circumstances of the case. Kshetrapal v. Dish Network, 2018 U.S. Dist. … Continue Reading
On February 21, 2018, the U.S. Supreme Court unanimously ruled that an individual is not covered by the anti-retaliation provision of the Dodd-Frank Act unless they have provided information regarding a violation of law to the U.S. Securities and Exchange Commission. Digital Realty Trust, Inc. v. Somers, No. 10-1276, 583 U.S. ___ (2018). Somers was … Continue Reading
Last week, the Seventh Circuit Court of Appeals held that a terminated CEO’s complaints about his board of directors’ managerial decisions did not qualify as protected whistleblowing under the Sarbanes-Oxley Act of 2002 (“SOX”) nor under the Dodd-Frank Act of 2010 (“DFA”). Verfuerth v. Orion Energy Sys., Inc., No. 16-3502, 2018 WL 359814 (7th Cir. … Continue Reading
On December 5, 2017, the SEC announced a whistleblower award of more than $4.1 million to an overseas former company insider. The SEC declined to disclose the identity of the whistleblower or the company at issue. The order noted that the tipster voluntarily reported original information that prompted an SEC investigation which uncovered an extensive … Continue Reading
The Department of Labor’s Administrative Review Board (ARB) recently held that a former employee of Exelis Systems Corporation who was employed in Afghanistan could bring a SOX claim even though he worked exclusively outside of the United States. Blanchard v. Exelis Systems Corp./Vectrus Systems Corp., ARB Case No. 15-031 (August 29, 2017). In so ruling, … Continue Reading
On July 6, 2017, the U.S. District Court for the Eastern District of Pennsylvania dismissed a whistleblower claim after determining that the plaintiff did not qualify as a whistleblower under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Reyher v. Grant Thornton, LLP, No. 16-1757 (E.D. Pa. July 6, 2017). Background The plaintiff, … Continue Reading
On June 26, 2017, the U.S. Supreme Court agreed to review whether individuals who do not report alleged securities law violations to the U.S. Securities and Exchange Commission are “whistleblowers” protected by the anti-retaliation provision of the Dodd-Frank Act. Somers v. Digital Realty Trust, Inc., 850 F.3d 1045 (9th Cir. 2017), cert. granted, No. 16-1276 … Continue Reading
On April 28, 2017, the United States Department of Labor Administrative Review Board (“ARB”) allowed a whistleblower retaliation claim under the Patient Protection and Affordable Care Act (“ACA”) to proceed even though the purported protected activity alleged in the complaint made no reference to ACA provisions. The case is Gallas v. The Medical Center of … Continue Reading
On May 22, 2017, the U.S. Commodity Futures Trading Commission (“CFTC” or the “Commission”) adopted several additions to its whistleblower rules. Among other things, the amendments expand the Commission’s power to pursue anti-retaliation claims on behalf of whistleblowers and, like the SEC, now prohibit confidentiality agreements that “impede” a whistleblower’s communications with the CFTC. The CFTC … Continue Reading
On May 11, 2017, the Northern District of New York applied the Second Circuit’s standard for evaluating a Dodd-Frank retaliation claim in response to a motion to dismiss under F.R.C.P. Rule 12(b)(6). The court denied the employer’s motion to dismiss unlawful retaliation claims brought by a former employee under Dodd-Frank, finding that the whistleblower had … Continue Reading
Recently, a California federal court denied the defendant–employer’s motion for a new trial, upholding the jury’s $7.96 million verdict finding that the Company terminated its former general counsel for reporting alleged Foreign Corrupt Practices Act violations. See Sanford S. Wadler v. Bio-Rad Labs., Inc. et al., 2017 WL 1910057 (N.D. Cal. May 10, 2017).… Continue Reading
On May 2, 2017, the Securities and Exchanges Commission issued a Dodd-Frank whistleblower award of more than $500,000 to an unidentified company employee. According to the SEC, the individual reported information that prompted an SEC investigation and resulted enforcement action by the agency. Jane Norberg, Chief of the SEC’s Office of the Whistleblower stated that … Continue Reading
On April 25, 2017, Digital Realty Trust Inc. asked the United States Supreme Court to decide whether an employee who files an internal complaint (as opposed to a complaint with the SEC) is covered by the Dodd-Frank Act’s whistleblower-protection provision. … Continue Reading
On April 25, 2017, the Securities and Exchange Commission issued a Dodd-Frank whistleblower award of nearly $4 million. This was the first bounty award that was issued from start-to-finish (i.e. from the preliminary determination stage through final order) since Trump’s inauguration. To maintain the whistleblower’s confidentiality, the SEC declined to disclose the organization involved. The agency did acknowledge, however, that … Continue Reading
On March 21, 2017, the Northern District of Texas dismissed a former employee’s whistleblower retaliation claim on the ground that her allegations of fraud were too far removed from potentially harming the shareholders of a publicly-traded company to be covered under SOX’s anti-retaliation protections. Brown v. Colonial Savings, F.A., No. 4:16-cv-00884 (N.D. Tex. Mar. 21, … Continue Reading
On March 8, 2017, a split three-judge panel of the Ninth Circuit Court of Appeals affirmed a Northern District of California decision declining to dismiss a Dodd-Frank whistleblower retaliation claim because the plaintiff did not report his concerns to the SEC. Somers v. Digital Realty Trust, 15-17352 (9th Cir. March 8, 2017). The Ninth Circuit … Continue Reading
In Erhart v. BofI Holding, Inc., Case No. 15-cv-02287, (S.D. Cal. Feb. 14, 2017), a bank’s internal auditor reported alleged misconduct to federal agencies, engaged in self-help discovery by appropriating the bank’s confidential information, and allegedly widely disseminated such information. When the bank alleged that this conduct violated the parties’ confidentiality agreement and state and … Continue Reading
On Thursday March 23, 2017 at 9:00 a.m., Lloyd Chinn will speak on “Practical Advice and Tips for Managing Whistleblowing Employees: Where Do We Go After the Volcano Blows?” at the 2017 Midwinter Meeting of the ABA Section of Labor and Employment Law’s Employment Rights and Responsibilities Committee in Puerto Vallarta, Mexico. Chinn is a partner … Continue Reading
A former employee of the upscale outdoor furniture designer and manufacturer Brown Jordan recently failed in his bid to pursue whistleblower retaliation claims against the company and also found himself liable for snooping on his boss’s (and other’s) emails. A three-judge panel of the Eleventh Circuit recently affirmed the District Court’s summary judgment for the employer … Continue Reading
As reported by Ryan Barber of the National Law Journal, the Trump administration could change the trajectory of the SEC whistleblower office, potentially halting the SEC’s recent strict scrutiny of potential impediments for whistleblowers. … Continue Reading
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
Update on BofI Whistleblower Litigation
By Lloyd B. Chinn, Harris Mufson and Austin McLeod on Posted in SOX Whistleblower Decisions
SDNY Grants Summary Judgment Against Plaintiff in SOX Blacklisting Suit
By Lloyd B. Chinn, Harris Mufson and Annabel Pollioni on Posted in SOX Whistleblower Decisions
U.S. Supreme Court Holds That Anti-Retaliation Provisions of Dodd-Frank Apply Only to Whistleblowers Who Report to the SEC
By Lloyd B. Chinn and Meika Freeman on Posted in Dodd Frank, SEC
Seventh Circuit Affirms Grant of Summary Judgment on Terminated CEO’s SOX And DFA Claims
By Lloyd B. Chinn, Harris Mufson and Bassam Gergi on Posted in Dodd Frank, SEC, SOX Whistleblower Decisions
SEC Issues $4.1 Million Award to Overseas Whistleblower
By Lloyd B. Chinn and Harris Mufson on Posted in Dodd Frank, SEC
DOL Allows SOX Claim Where Foreign Whistleblower Alleged Violation of US Law
By Lloyd B. Chinn, Harris Mufson and Rachel Fischer on Posted in SOX Whistleblower Decisions
E.D. Pennsylvania Dismisses Dodd-Frank Whistleblower Claim After Plaintiff Fails to Qualify as a Whistleblower
By Lloyd B. Chinn, Harris Mufson and Brett Schwab on Posted in Dodd Frank
U.S. Supreme Court To Review Scope Of “Whistleblower” Under Dodd-Frank
By Lloyd B. Chinn and Sunghee Sohn on Posted in Dodd Frank
ACA Retaliation Claim Survives Despite No Complaint About ACA Provisions
By Lloyd B. Chinn, Harris Mufson and Susan McAleavey on Posted in ACA
CFTC Amends Whistleblower Rules to Strengthen Anti-Retaliation Protections and Encourage Whistleblower Tips
By Lloyd B. Chinn and Noa Baddish on Posted in CFTC, Dodd Frank
The Northern District of New York Applies the “Reasonable Belief” Standard
By Lloyd B. Chinn, Harris Mufson and Dana N. Berber on Posted in Dodd Frank, SOX Whistleblower Decisions
California Federal Court Upholds $8 Million Jury Verdict In Former General Counsel’s Whistleblower Lawsuit
By Lloyd B. Chinn, Harris Mufson and Andrew Sherwood on Posted in Dodd Frank, SOX Whistleblower Decisions
SEC Issues Another Whistleblower Bounty Award
By Lloyd B. Chinn, Harris Mufson and Dana N. Berber on Posted in SEC
Supreme Court Asked to Review Scope of Dodd-Frank’s Whistleblower Provision
By Lloyd B. Chinn, Harris Mufson and Noa Baddish on Posted in Dodd Frank
SEC Announces First Whistleblower Award During Trump Era
By Lloyd B. Chinn, Harris Mufson and McKenzie A. Wilson on Posted in Dodd Frank, SEC
Texas District Court Dismisses SOX Whistleblower Claim For Lack of Protected Activity
By Lloyd B. Chinn and Emilie Adams on Posted in Dodd Frank, SOX Whistleblower Decisions
Ninth Circuit — Dodd-Frank Protects Internal Whistleblowers
By Lloyd B. Chinn and Emilie Adams on Posted in Dodd Frank
California District Court Addresses Whistleblower’s Self-Help
By Lloyd B. Chinn and Anthony DiBenedetto on Posted in Employee Document/Data Theft
Proskauer to Present on Managing Whistleblowing Employees at ABA Midwinter Meeting
By Lloyd B. Chinn on Posted in Best Practices, SOX Whistleblower Decisions
Proskauer Represents Employer Against Former Executive Found Liable for Snooping on Boss’s and Others’ Emails
NY Law Journal Report: Trump And The Future Of The SEC Whistleblower Program
By Lloyd B. Chinn, Harris Mufson and Dana N. Berber on Posted in SEC
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
