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.
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
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