Under Dodd-Frank, employers may bar employee retaliation claims if the Securities and Exchange Commission (“SEC”) fails to hear the whistle. On February 21, 2018, the United States Supreme Court did just that when it confirmed whistleblower protection under the Dodd-Frank Act only extends to those who report securities law violations directly to the SEC.
This decision provides employers facing whistleblower retaliation claims for reported securities law violations across the nation with clarification as to who may sue under Dodd-Frank. Now, employers may bar employee or former employee claims filed under Dodd-Frank if the employee did not report the alleged securities law violations to the SEC prior to their termination.
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