I was pleased to see that the U.S. House of Representatives recently passed the Whistleblower Protection Reform Act of 2019 by an overwhelming majority, 410-12. This bipartisan bill enhances the Dodd-Frank Act’s whistleblower protections and makes clear that employers in the finance industry cannot retaliate against whistleblowers who report security fraud. This law is a direct reaction the U.S. Supreme Court’s horrible 2018 decision, Digital Realty, Inc. v. Somers, which held that only whistleblowers who reported fraud to the Securities and Exchange Commission or SEC enjoyed anti-retaliation protection, not those who report fraud to any number of other available agencies.
Are you considering becoming a whistleblower? You will need the help of an experienced whistleblower attorney to guide you through the process and to attain your fair share of compensation. Contact Barrett Law now at (601) 790-1505 to attain the advice you need.
The U.S. House Attempts to Rewind Digital Realty Case
The U.S. Supreme Court’s Digital Realty decision dramatically narrowed how most people imagined a whistleblower. Traditionally, a whistleblower was thought of as someone who made either internal or external reports of securities fraud to the SEC. However, because of the way Dodd-Frank was written, the statute’s retaliation clause and ant-retaliation provision applied only to those whistleblowers that reported fraud externally and only to the SEC. This is a problem because many whistleblowers in the world of finance first make their reports internally and then may make subsequent reports to law enforcement agencies other than the SEC. As written, Dodd-Frank did not extend whistleblower protections to these individuals.
The changes proposed by the Whistleblower Protection Reform Act of 2019 would bring external finance whistleblowers back within Dodd-Frank’s anti-whistleblower clause. In short, if approved by the Senate and signed by President Trump, the Whistleblower Protection Reform Act of 2019 will return finance industry whistleblowers to their pre-Digital Realty position. This is good for everyone, as it incentivizes internal whistleblowing, which allows finance companies to change their practices before an SEC investigation. Whistleblowers will still be entitled to a significant percentage of the fraud they reported, if they report it externally to the SEC within 120 days, and will enjoy whistleblower protection for their disclosures.
As an example of the sort of disclosure at issue here the SEC recently made an award of $4.5 million to a finance industry whistleblower who internally reported a kickback scheme was occurring in relation to his work in Brazil. The SEC’s enforcement action resulted in a $30 million recovery for the U.S. government. Attaining this sort of reward will require the help of a skilled whistleblower attorney.
Are You Considering Making a Whistleblower Claim?
Are you a finance industry employee considering filing a whistleblower case? While the reward for submitting a successful claim can be significant, you will only receive this sort of multi-million dollar award with the help of an experienced whistleblower attorney. The SEC and U.S. Department of Justice receive thousands of potential whistleblower claims each year, and only those that meet their requirements and are reported in a way that triggers their interest are acted upon. Careful pleading and an organized approach to gathering evidence are critical to this process and will require the help of an experienced whistleblower counsel. Contact Barrett Law now at (601) 790-1505.
Experienced Mississippi Whistleblower Lawyer Jonathan Barrett can provide you with the advice you will need to file a successful whistleblower case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.
