From high-stakes litigation to record monetary awards, whistleblowers made waves in 2014. In case you missed it, below are some of the key whistleblower legal developments that took place this year:
Whistleblower awards
The Securities and Exchange Commission (SEC) issued a record number of whistleblower awards in 2014, surpassing all previous years combined. In addition, the Office of the Whistleblower received 3,620 tips in FY 2014, which represents a more than 20 percent increase in the number of whistleblower tips in just two years. The agency also authorized its largest payout to date, an award of more than $30 million to a whistleblower who provided key original information that led to a successful enforcement action.
Definition of whistleblower
In March, the U.S. Supreme Court ruled that the whistleblowers provisions of the Sarbanes-Oxley financial reform law apply to employees of contractors of public companies. With regard to Dodd-Frank, the Second Circuit Court of Appeals held that Congress did not intend for the law to apply extraterritorially in denying a whistleblower claim by a Taiwanese national who alleged he was terminated for reporting corruption at Siemens AG’s Chinese affiliate.
Anti-retaliation provisions
This year, the SEC filed its first enforcement action under the anti-retaliation provisions of the Dodd-Frank Act. With regard to private litigation, a circuit split has developed regarding whether whistleblowers must complain directly to the SEC in order to qualify and benefit from the law’s anti-retaliation protections.
Settlement agreements
Last month, the Financial Industry Regulatory Authority (FINRA) warned firms against using confidentiality clauses in settlement agreements to stifle whistleblowers. The regulatory notice specifically emphasized that FINRA Rule 2010 prohibits provisions that restrict or preclude a customer or any other person from communicating with the Securities and Exchange Commission (SEC), FINRA, or any federal or state regulatory authority regarding a possible securities law violation.
How Understanding Bankruptcy Trends Can Benefit Your Business
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
SEC Takes Actions Against Issuers for Failure to File Form D
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
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