February 21, 2018
Today, the Supreme Court held 9-0 that whistleblowers must report alleged misconduct to the SEC before they can sue under the Dodd-Frank Act’s anti-retaliation provision.
Background:
The Dodd-Frank Act prohibits retaliating against a “whistleblower” because that person reported misconduct to the SEC; initiated, testified in, or assisted with an SEC proceeding; or made certain required or protected disclosures. 15 U.S.C. § 78u-6(h)(1)(A). The Act defines a “whistleblower” as a person who reports misconduct to the SEC. 15 U.S.C. § 78u-6(a)(6). Paul Somers reported suspected misconduct to his employer but not to the SEC. After he was fired, he sued his former employer for retaliation under the Dodd-Frank Act.
Issue:
Whether the Dodd-Frank Act’s anti-retaliation provision extends to individuals who have not reported alleged misconduct to the SEC.
Court’s Holding:
Whistleblowers must report suspected misconduct to the SEC to be able to sue for retaliation under the Dodd-Frank Act.
“Courts are not at liberty to dispense with the condition—tell the SEC—Congress imposed.”
Justice Ginsburg, writing for the Court
What It Means:
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