Supreme Court Holds Internal Complainants Are Not Dodd-Frank Whistleblowers

In an important case clarifying the scope of the anti-retaliation provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the U.S. Supreme Court held on Feb. 21, 2018, that the law unambiguously requires an individual to report a securities law violation to the SEC in order to claim whistleblower protection under the provision. This means an employee who makes only an internal report may be protected by the Sarbanes-Oxley Act of 2002, but is not also protected under Dodd-Frank. In 2010, Congress passed Dodd-Frank and established a robust whistleblower program designed to motivate employees to report securities law violations to the U.S. Securities and Exchange Commission (SEC). In addition to entitling whistleblowers to cash rewards, Dodd-Frank includes an anti-retaliation provision that prohibits employers from discriminating against or terminating employees for making such reports to the SEC. The interplay between the definition of…

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