On October 15, 2024, the U.S. Court of Appeals for Third Circuit declined to enforce a preliminary reinstatement order issued by OSHA in favor of two purported whistleblowers under SOX, holding that the former employees lost Article III standing after they abandoned the administrative process to instead challenge their terminations though a separate civil action
Latest from Proskauer Whistleblower Defense
Ninth Circuit Revives Rail Worker’s Whistleblower Claims
The Ninth Circuit’s recent decision in Parker v. BNSF Railway Company, 112 F.4th 687 (9th Cir. 2024) underscores the burden faced by employers in defending against whistleblower retaliation claims assessed under the burden-shifting framework of the Federal Railroad Safety Act (“FRSA”), which provides that an employee may not be retaliated against “in whole or
SEC Announces Slew of Enforcement Actions Regarding Whistleblower Protection Rule
The SEC recently announced the settlement of multiple enforcement actions for violations of its whistleblower protection rule, which prohibits “any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation.” SEC Rule 21F-17(a). These settlements resulted in the targeted companies paying fines exceeding $3 million in the
Texas District Court Grants Summary Judgment on SOX Whistleblower Counterclaim
On August 6, 2024, the U.S. District Court for the Northern District of Texas granted an employer’s motion for summary judgment on a SOX whistleblower retaliation counterclaim, holding that the former employee failed to establish any of the elements of the claim and that the company would have taken the same personnel actions regardless of
SEC Awards Two Whistleblowers More Than $98 Million
On August 23, 2024, the SEC announced payment of more than $98 million in total to two whistleblowers who provided the SEC with information and assistance that led to successful enforcement actions by the SEC and another agency (the order granting the award can be accessed here). The first whistleblower, whose tip prompted the
SEC Announces $37 Million Award to Whistleblower
On July 26, 2024, the SEC announced an award of more than $37 million to a whistleblower who first reported misconduct internally and subsequently provided information and assistance that led to a successful SEC enforcement action. (The order granting the award can be accessed here.)
Creola Kelly, Chief of the SEC’s Office of the
DOJ Announces Development of a Pilot Whistleblower Rewards Program
On March 7, 2024, Deputy Attorney General Lisa Monaco announced that the U.S. Department of Justice (“DOJ”) is creating a pilot whistleblower rewards program, which will be developed and implemented over the next 90 days, with a formal start date to be announced later in 2024.
According to the announcement, individuals who assist the DOJ
CFTC Releases FY 2023 Annual Report on its Whistleblower Program
The Commodity Futures Trading Commission (“CFTC”) recently released its statutorily mandated 2023 Annual Report detailing the status of its whistleblower program for the fiscal year ending on September 20, 2023.
The CFTC’s whistleblower program pays awards to eligible whistleblowers who voluntarily provide original information about violations of the Commodity Exchange Act (“the Act”) that leads
Words Matter: Three Key Steps to Mitigate SEC Enforcement Risks Relating to Whistleblower Carveout Language
Since 2015, the SEC has brought nearly two dozen enforcement actions for violations of the whistleblower protection rules under Rule 21F-17(a) against employers for actions taken to impede reporting to the SEC. The bulk of these actions have focused on language in employee-facing agreements that allegedly discouraged such reporting. The SEC shows no sign of
CA District Court Upholds $1.5 Million Jury Verdict and Awards $2.4 Million for Attorneys’ Fees in Long-Running SOX Whistleblower Lawsuit
On September 28, 2023, the U.S. District Court for the Southern District of California issued two separate orders in a long-running SOX whistleblower lawsuit. Following a jury trial, the court upheld the jury’s $1.5 million damages award and awarded the plaintiff $2.4 million in attorneys’ fees. Erhart v. BofI, No. 15-cv-2287.
Background
As we previously