From high-stakes litigation to record monetary awards, whistleblowers made waves in 2014. In case you missed it, below are some of the key whistleblower legal developments that took place this year:
Whistleblower awards
The Securities and Exchange Commission (SEC) issued a record number of whistleblower awards in 2014, surpassing all previous years combined. In addition, the Office of the Whistleblower received 3,620 tips in FY 2014, which represents a more than 20 percent increase in the number of whistleblower tips in just two years. The agency also authorized its largest payout to date, an award of more than $30 million to a whistleblower who provided key original information that led to a successful enforcement action.
Definition of whistleblower
In March, the U.S. Supreme Court ruled that the whistleblowers provisions of the Sarbanes-Oxley financial reform law apply to employees of contractors of public companies. With regard to Dodd-Frank, the Second Circuit Court of Appeals held that Congress did not intend for the law to apply extraterritorially in denying a whistleblower claim by a Taiwanese national who alleged he was terminated for reporting corruption at Siemens AG’s Chinese affiliate.
Anti-retaliation provisions
This year, the SEC filed its first enforcement action under the anti-retaliation provisions of the Dodd-Frank Act. With regard to private litigation, a circuit split has developed regarding whether whistleblowers must complain directly to the SEC in order to qualify and benefit from the law’s anti-retaliation protections.
Settlement agreements
Last month, the Financial Industry Regulatory Authority (FINRA) warned firms against using confidentiality clauses in settlement agreements to stifle whistleblowers. The regulatory notice specifically emphasized that FINRA Rule 2010 prohibits provisions that restrict or preclude a customer or any other person from communicating with the Securities and Exchange Commission (SEC), FINRA, or any federal or state regulatory authority regarding a possible securities law violation.
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
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Navigating Director and Officer Liability in Times of Financial Distress
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Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
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What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
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