On August 5, 2022, the Second Circuit overturned a nearly $1 million jury award granted to a former employee of UBS Securities LLC (“UBS”). The Court held that the judge’s instruction to the jury—that Plaintiff was “not required to prove that his protected activity was the primary motivating factor in
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SEC Adopts Amendments to Whistleblower Program Rules
By Steven J. Pearlman & Pinchos Goldberg on
On August 26, 2022, the U.S. Securities and Exchange Commission announced that it had adopted two amendments to its whistleblower program rules proposed earlier this year (see our post here).
The first amendment allows whistleblowers who would have been eligible for an award under another whistleblower program that would…
First Circuit: FCPA is not a “Rule or Regulation of the SEC” Under SOX Whistleblower Provision
On July 13, 2022, the First Circuit reversed a denial of summary judgment, finding plaintiff could not satisfy his burden of showing he engaged in protected activity under the SOX whistleblower protection provision. Baker v. Smith & Wesson, No. 21-2019 (1st Cir. 2022). The decision affirms that protected activity…
SEC Announces $17 Million Award to Whistleblower
By Steven J. Pearlman & Pinchos Goldberg on
CA District Court: SOX and Dodd-Frank’s Whistleblower Provisions Do Not Apply To Individual Employed Abroad
On June 7, 2022, the United States District Court for the Northern District of California, relying on recent ARB decisions, held that a plaintiff who lived and worked for a Canadian subsidiary of a US company could not avail himself to the anti-retaliation provisions of SOX and the Dodd-Frank Act. …
Florida District Court Limits Scope of Protected Activity under the FCA
By Lloyd B. Chinn, Pinchos Goldberg & Dixie Morrison on
On March 29, 2022, the U.S. District Court for the Southern District of Florida held that in order to engage in protected conduct under the False Claims Act (“FCA”), a plaintiff must specifically suspect that their employer has made a false claim for payment to the federal government; vague suspicions…
D.C. Circuit: No Award to Whistleblower Who Made Disclosure Before Enactment of SEC’s Whistleblower Program
By Lloyd B. Chinn, Pinchos Goldberg & Dixie Morrison on
On May 27, 2022, the D.C. Circuit Court of Appeals affirmed an order by the Securities and Exchange Commission (“SEC”) denying a whistleblower award under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), holding that information provided to the SEC prior to Dodd-Frank’s enactment did not qualify for…
SEC Proposes Amendments to Whistleblower Program Rules, Which May Lead to More SEC Tips
By Steven J. Pearlman & Pinchos Goldberg on
On February 10, 2022, the U.S. Securities and Exchange Commission announced two proposed amendments to its whistleblower program rules.
As we previously reported here, a closely divided SEC adopted a final rule implementing several changes to its whistleblower program in September 2020. On January 13, 2021, a whistleblower attorney…
CA Supreme Court: Contributing-Factor Standard Applies to Whistleblower Retaliation Claims
On January 27, 2022, the California Supreme Court settled an inconsistency that has divided the courts of appeal with respect to the proper evidentiary standard for whistleblower retaliation claims under California Labor Code section 1102.6. It ruled that the “contributing-factor” standard applies. Lawson v. PPG Architectural Finishes, Inc., No.…
SDNY: Confidentiality Agreement Impeded Investors from Whistleblowing
By Steven J. Pearlman, Pinchos Goldberg & Scott Tan on
On November 17, 2021, the U.S. District Court for the Southern District of New York held that a company and its CEO violated Rule 21F-17 of the Exchange Act by entering into confidentiality agreements with investors that prohibited communications with the SEC, and subsequently attempting to enforce those agreements. SEC …