New Limits on Whistleblower Protection: SCOTUS Makes SEC Reporting a Mandatory Requirement

March 1, 2018

Resolving a Circuit split, the United States Supreme Court unanimously held last week that an employee must report a securities violation to the Securities and Exchange Commission if he wishes to avail himself of the anti-retaliation protections for whistleblowers in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. 

As background, Dodd-Frank shields “whistleblower[s]” from retaliation, prohibiting employers from discharging, demoting, suspending, threatening, or harassing a whistleblower. 15 U.S.C. § 78-6(h). A “whistleblower” is “any individual who provides . . . information relating to a violation of the securities laws to the Commission” (i.e., the SEC). 15 U.S.C. § 78-6(a)(6).

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