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.
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
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