Compliance » SDNY Court: Internal Tipsters Not Protected From Retaliation

SDNY Court: Internal Tipsters Not Protected From Retaliation

BIZ SECRETS 420

January 1, 2015

Is a person who complains internally about a securities law violation but does not tell the SEC protected by anti-retaliation provisions of the Dodd-Frank Act? Proskauer Rose attorneys Steven J. Pearlman, Harris Mufson and Allison Lynn Martin look at a recent case in the Southern District of New York that determined the answer to be no. In Berman v. Neo@Ogilvy, the plaintiff had argued that Dodd-Frank is ambiguous on the question and that the court should defer to the SEC, which contends that “whistleblower” includes employees who report internally. U.S. District Judge Gregory H. Woods, diverging from other district court decisions but in accord with a ruling from the Fifth Circuit, disagreed.

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