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Dodd-Frank Act Prohibits Public Companies’ Subsidiaries and Affiliates From Retaliating Against Employees Who Report Fraud

On July 21, 2010, President Obama signed into law, effective July 22, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act," "Dodd-Frank," or the "Act"), H.R. 4173. Sections 922 and 929A of the Dodd-Frank strengthen and expand the...

2nd Circuit Sends N.J. Whistle-Blower Claims Back For Reconsideration

NEW YORK - A Second Circuit U.S. Court of Appeals panel on Nov. 17 affirmed summary judgment on federal False Claims Act (FCA) termination claims by former Pfizer executive Peter Rost but reversed judgment as to his claims under New Jersey's whistle-blower protection laws ( Peter Rost v. Pfizer...

Will Cash Incentives for Whistleblowing Undermine Compliance Programs?

Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides an expanded whistleblower program that allows the whistleblower to get part of the money paid to the SEC for the violation. After several years of encouraging the development of internal complaint hotlines and compliance...

Client Alert: Employer Compliance Guidance for Whistleblower Provisions Under New Food Safety Modernization Act

As previously reported by Keller and Heckman LLP, President Obama signed the Food Safety Modernization Act (FSMA) into law on January 4, 2011. While most of the provisions regarding stricter food safety standards will not be effective until 2012, FSMA Section 402, which provides sweeping protections...

WikiLeaks Versus the SEC

No, (to my knowledge) Wikileaks hasn't released detailing corruption in the SEC. Instead, Sherron Watkins, the primary whistleblower in the Enron fraud, weighed in on the SEC's new incentives for whistleblowers . In a panel discussion about whistleblowers held by the New York State Society...

The Word is "Whistleblower"

A number of different organizations generate annual publicity for themselves by designating a word (or words) of the year . We are not yet half way through 2011 but I am already prepared to propose my own candidate for this year's word of the year - the word is "whistleblower." From the...

SEC Adopts Final Dodd-Frank Whistleblower Implementation Rules

On May 25, 2011, the SEC adopted the final rules implementing the whistleblower provisions of the Dodd-Frank Act . The SEC declined to propose a rule that would have required whistleblowers to report first through internal corporate compliance programs. However, the SEC adopted changes that are intended...

SEC Adopts Rules Establishing Whistle-Blower Program under Dodd-Frank Act

WASHINGTON, D.C. - (Mealey's) The Securities and Exchange Commission on May 25 adopted 17 new rules providing for whistle-blower incentives and protection under the Securities Exchange Act of 1934, bringing it in compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act. ...

The New SEC Whistleblower Rule

In a blow to the efforts of internal compliance, the SEC will let corporate whistle-blowers collect a percentage of penalties when they report financial wrongdoing, even when they bypass companies' internal complaint systems. "For an agency with limited resources like the SEC, it is critical...

Worth Reading … Final SEC Whistleblower Rules

by Gary Larkin As you all may well know by now, the SEC has adopted its final rules to create a whistleblower bounty program as part of the Dodd-Frank Act by a familiar 3-2 split vote. The rules, which go into effect 60 days after they are submitted to Congress or published in the Federal Register...

Cadwalader Client & Friends Memo: The Dodd-Frank Whistleblower Provisions-- Considerations for Effectively Preparing for and Responding to Whistleblowers

As part of the Dodd-Frank Act ("Dodd-Frank" or the "Act"), Congress created powerful incentives to encourage persons to report (i) potential violations of the federal securities laws to the Securities and Exchange Commission ("SEC")1 and (ii) potential violations of the...

Duane Morris Alert: SEC Adopts Final Rules on Dodd-Frank Whistleblower Program

SEC's Dodd-Frank whistleblower rules may incentivize employee bounty-hunting at public companies. Companies need to improve their compliance programs to limit the potential hazards. On May 25, 2011, the U.S. Securities and Exchange Commission (SEC) adopted final rules (the "Rules") for...

SEC's New Dodd-Frank Whistleblower Rules Redefine Reporting Landscape

Perkins Coie Experts Examine the SEC's Final Rules Implementing the Hotly Anticipated New Dodd-Frank Whistleblower Bounty Program and Provide Practical Guidance for Post-Act Compliance By Patrick Collins Esq., T. Markus Funk Esq., Gina LaMonica Esq. and Caryn Trombino Esq. Excerpt: Introduction...

SEC Commissioner Paredes Speaks at Stanford Directors' College

I am on the ground in Palo Alto this week at the annual Stanford Law School Directors' College , where the opening speaker on Sunday night was SEC Commissioner Troy Paredes , whose presentation was in the form of a dialog with Stanford Law Professor and former SEC Commissioner Joseph Grundfest...

Public Policy is in the Eye of the Beholder

Consider the following two wrongful discharge cases, both recently decided by different Ohio appellate courts, and think about which you believe presents a bigger risk for the employer: 1. In Morris v. Dobbins Nursing Home (6/20/11) , a nursing home aide claimed that she was illegally terminated because...

CFTC Whistleblower Rules Finalized

The CFTC was given expanded powers to financially reward whistleblowers through the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Pursuant to new Section 23 of the Commodity Exchange Act (CEA) entitled, "Commodity Whistleblower Incentives and Protection," the CFTC...

Dodd-Frank Wall Street Reform and Consumer Protection Act: Impact on Employers

Fulbright's Financial Reform Task Force Cynthia M. Benedict and Blake W. Stribling Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act authorized the SEC to reward whistleblowers for reporting violations of federal securities laws to the government and created a...

The BNY Whistleblower – The Dodd-Frank Clock is Running, is Your Company Ready?

The time period that an internal whistleblower must wait before he or she can bring information to the Securities and Exchange Commission (SEC), under the Dodd-Frank Whistleblower provision, within 120 days after the information has been internally reported to the company. Is your company ready for...

SEC Releases Initial Report on the Dodd-Frank Whistleblower Program

Even thought the SEC's final regulations for the Dodd-Frank whistleblower program just became effective on August 12, 2011, the agency has already filed its first report on the whistleblower program. Under Section 924(d) of the Dodd Frank Act, the SEC must report annually to Congress on its activities...

SEC’s Whistleblower Annual Report

Dodd-Frank added Exchange Act Section 21F(g)(5) and requires that SEC's Office of the Whistleblower to report to Congress annually on the whistleblower program. It's due each October 30. I'm sure the SEC wanted to be in compliance, so they released the first annual report on the Dodd...

EADS and Tales of Whistleblowers: A Compliance Nightmare?

What is a compliance professional's worst nightmare? Last week in Episode 49 of This Week in FCPA , Howard Sklar and I speculated on why the UK Serious Fraud Office (SFO) would announce it was opening an investigation into the activities of the UK defense contractor, EADS. On Tuesday, in a Financial...

Will Obstacles Deter the SEC's Dodd-Frank Whistleblower Program?

Whistleblower information may be one of the SEC's "most effective weapons in its new enforcement arsenal," but the agency's whistleblower program "faces challenges on many fronts," according to an April 23, 2013 New York Times Dealbook article entitled "Hazy Future...

Whistleblower Report Follow-On Securities Suit: We'll Be Seeing More of These

On October 30, 2013, the SEC announced another whistleblower bounty award under the Dodd-Frank whistleblower program. Although the size of this latest award ($150,000) is relatively modest compared to the recent $14 million award (about which refer here ), the most recent award does suggest that awards...

SEC Releases Fiscal 2013 Whistleblower Report

Whistleblower reports to the SEC continued to rise during the latest fiscal year, according to the agency’s annual Dodd-Frank Whistleblower Program report to Congress. According to the November 15, 2013 report, a copy of which can be found here , there were 3,238 whistleblower reports to the SEC...

OSHA Encourages Nationwide Adoption of “Early Resolution” ADR in Whistleblower Cases

On August 18, 2015, the Occupational Safety and Health Administration released a directive to its regional offices to adopt “early resolution” alternative dispute resolution in whistleblower cases. The directive follows a successful pilot program by OSHA in its Chicago and San Francisco regions...