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Whistleblowers Whistleblower Protection Policies Publicly-Traded Companies

A&O Shearman

TerraCom’s Whistleblower Woes - Australian Federal Court Approves First Whistleblower Retaliation Penalty

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TerraCom has been ordered by the Federal Court of Australia to pay an AUD7.5 million civil penalty for retaliating against a whistleblower in proceedings commenced by the Australian Securities & Investments Commission (ASIC)....more

Cornerstone Research

SEC Enforcement Actions Against Public Companies and Subsidiaries Drop by 12% in FY 2024; Actions Still Up Nearly 5% Compared to...

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The U.S. Securities and Exchange Commission (SEC) initiated 80 enforcement actions against public companies and subsidiaries in fiscal year 2024, marking a 12% decline from FY 2023 but still up nearly 5% compared to the...more

Fenwick & West LLP

SEC Settles Seven Whistleblower Protection Actions

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On September 9, the SEC settled charges against seven public companies for violations of the whistleblower protection rule. According to the SEC’s orders, among other things, these companies violated Rule 21F-17(a) by...more

White & Case LLP

Time to Review Whistleblower Provisions: SEC Charges Seven Public Companies with Violation of Whistleblower Protection Rule

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On September 9, 2024, the US Securities and Exchange Commission (“SEC”) announced settled charges against seven public companies for violation of the whistleblower protection rule in connection with employment, separation,...more

Dorsey & Whitney LLP

Companies Subject to U.S. Jurisdiction Should not Restrict Personnel from Being SEC Whistleblowers, or Receiving SEC Whistleblower...

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SEC rules prohibit taking “any action” to impede an individual from communicating directly with the SEC about a possible securities law violation, including by enforcing, or threatening to enforce, a confidentiality...more

Ballard Spahr LLP

SEC Announces Settlements with Seven Public Companies for Violations of Exchange Act Whistleblower Protections in Employee and...

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The SEC has begun to bring enforcement actions against companies whose employment and client agreements could appear to infringe on the right to report cases in violation of Section 21f-17(a) of the Exchange Act. On September...more

BCLP

SEC Again Cracks Down on Companies That Restrict Whistleblowers

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As discussed in our December 15, 2023 client alert, the SEC has waged an aggressive effort to enforce alleged violations of the whistleblower protection rule.  On September 9, 2024, the SEC announced settled charges resulting...more

Jenner & Block

Client Alert: Key Takeaways from the SEC’s Latest Enforcement Sweep Regarding Violations of the Whistleblower Protections Rule

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Earlier this week, the SEC announced an enforcement sweep charging seven public companies with violating the whistleblower protections rule in various employment-related agreements. These charges reflect the SEC’s continuing...more

Oberheiden P.C.

A Guide to Whistleblowing Under the Sarbanes-Oxley Act (SOX)

Oberheiden P.C. on

The Sarbanes-Oxley Act of 2002, also referred to as SOX or as Sarbox, is a federal statute that requires specific corporate recordkeeping measures as well as financial reporting. It was passed in the aftermath of several huge...more

Conn Maciel Carey LLP

The easier-to-satisfy “contributing factor” framework is enough to prove whistleblower protection under the Sarbanes-Oxley Act.

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The Sarbanes-Oxley Act (“Act” or ”SOX”) shields whistleblowers from retaliation for reporting any wrongdoing by publicly traded companies. Recently, in Murray v. UBS Securities, LLC, the U.S. Supreme Court evaluated the...more

Poyner Spruill LLP

Whistleblower Risks: United States Supreme Court Clarifies Burden of Proof

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In Murray v. UBS Securities, LLC the United States Supreme Court resolved a circuit split, holding that whistleblowers asserting retaliation claims under Sarbanes-Oxley must prove protected activity was a contributing factor...more

K&L Gates LLP

Addressing Whistleblower Claims Under Sarbanes-Oxley and Beyond: US Supreme Court Hears Argument on Burden of Proof Requirements

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The United States Supreme Court recently heard oral argument in a case arising under the whistleblower provisions of the Sarbanes-Oxley Act of 2002 (SOX), presenting the question of who must prove intent in a whistleblower...more

Holland & Knight LLP

SEC to Issuers: Retaliating Against or Impeding Whistleblowers Is Not Zen

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Public companies should be mindful not to interfere with or retaliate against whistleblowers, and stretching is best reserved for the yoga mat, not the numbers in a company's public disclosures. So says the U.S. Securities...more

White & Case LLP

How to Avoid Risk of SEC Whistleblower Rule Violations in Connection with Employee-related Documents

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On February 3, 2023, the US Securities and Exchange Commission ("SEC") announced that a public company agreed to pay $35 million to settle charges of, among other things, violations of the whistleblower protection rule.1...more

Goodwin

SEC Adopts Amendments to Whistleblower Program Rules

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Regulatory Developments - SEC Adopts Amendments to Whistleblower Program Rules - On August 26, the SEC adopted two amendments to the rules governing its whistleblower program, which are covered under Section 922 of...more

Katten Muchin Rosenman LLP

Capital Markets Compass | Issue 1

Stable Road Enforcement Action Post Mortem: Lessons for the SPAC Market After Momentus Begins Trading - Stable Road And Momentus Close Business Combination. On August 11, Stable Road Acquisition Corp., a special purpose...more

Polsinelli

SDNY Rejects Director Liability for Sarbanes-Oxley Whistleblower Claims, Creating a Split Among Federal District Courts

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Public company directors, who are under constant threat of claims, received welcome news earlier this month.  On December 9, 2019, the U.S. District Court for the Southern District of New York ruled that corporate directors...more

Mayer Brown Free Writings + Perspectives

House Financial Services Committee and House of Representatives Address Capital Formation Related Bills

This past week, the House Financial Services Committee considered and passed a few bills that would, if passed by the House, result in changes to the securities laws. ...more

Proskauer - Whistleblower Defense

ARB Affirms Dismissal of SOX Whistleblower Claim Against Non-Public Companies

The ARB recently affirmed the dismissal of a whistleblower retaliation claim under Section 806 of SOX, holding an employer is not a “contractor” covered by SOX simply because it was a party to a contract with a publicly...more

Thomas Fox - Compliance Evangelist

How Compliance Adds to the Bottom Line

I have long articulated that companies that have robust compliance programs are more efficient, better run and more profitable organizations. ...more

Saul Ewing LLP

E.D. Pa. Clarifies that Whistleblower Protections under Dodd-Frank and Sarbanes-Oxley Acts Only Cover Conduct Involving...

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A trial court in the Eastern District of Pennsylvania recently ruled that the whistleblower protections of the Dodd-Frank Act and Sarbanes-Oxley Act (“SOX”) do not necessarily apply to employees of private entities, even if...more

Littler

SEC Issues Cease-and-Desist Order Against Severance Agreement Clause Limiting Whistleblowers' Rights to Recover Bounty Awards

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On August 10, 2016, the U.S. Securities and Exchange Commission issued a cease-and-desist Order and imposed remedial sanctions against a publicly traded company for including language in its severance agreements requiring...more

Mintz - Employment, Labor & Benefits...

Internal Whistleblowing Protected Against Retaliation Under Dodd-Frank Says Second Circuit

While the Dodd-Frank Act provides various protections to whistleblowers, federal courts have inconsistently interpreted who precisely qualifies as a whistleblower. In a much-anticipated opinion, the Second Circuit Court of...more

JAMS

Whistleblower Cases are Custom Tailored for ADR

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Various state and federal statutes exist to protect and compensate employees whose employers retaliate against them after they disclose certain fraudulent practices to the employers or government agencies. These are known as...more

Saul Ewing Arnstein & Lehr LLP

Third Circuit Panel Liberalizes "Protected Activity" Immunity for Employees Claiming Whistleblower Status

The popular image of the American corporate whistleblower, as depicted in Hollywood box-office smashes such as The Insider and Michael Clayton, is a courageous hero who reports corporate wrongdoing, often at the risk of...more

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