The Law Offices of Neal Brickman, P.C.
P 646-835-0890

Supreme Court narrows Wall Street whistleblower protections

A recent Supreme Court ruling could have significant consequences for would-be whistleblowers on Wall Street. In a unanimous decision, the justices ruled that employees are not safe from retaliation from their employers if they do not first report corporate wrongdoings to the Securities and Exchange Commission (SEC).

The ruling comes as something of a blow to an existing federal law that aimed to fight fraud on Wall Street. That law, enacted by Congress in 2010, offered protections to whistleblowers who reported corporate malfeasance—a response to the devastating financial crisis that took place just a few years earlier.

What will this mean going forward?

Previous interpretations of the law in question—dubbed as the “Dodd-Frank law”—including those by the SEC, had allowed that it covered internal whistle-blowing. The Supreme Court’s recent decision suggests a much more literal reading of the law, dictating that if employees do not first turn to the SEC, all bets are off.

How this ruling plays out, and the effects it has going forward, will be worth monitoring. Whistleblower laws are often meant to foster greater transparency and encourage those who see wrongdoing to report it. Will this ruling instill fear in employees, or even worse, lead them to turn a blind eye in the future? That’s difficult to predict, though as it’s the SEC’s role to monitor illicit corporate activities, they remain a logical party to report such things to.

Still, financial professionals who feel as though their employers have wrongfully punished them may have options. Individuals who find themselves in such a situation could benefit from consulting with an experienced legal professional who may be able to offer guidance going forward.

No Comments

Leave a comment
Comment Information
  • NYSBA
  • New York City Bar
  • Distinguished AV. LexisNexis, Martindale-Hubbell Peer Review Rated for ethical standards and legal ability
  • Defending Liberty Pursuing Justice
  • Avvo
Email Us For a Response

How Can We Help You

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

420 Lexington Avenue, Suite 2440
New York, New York 10170

Phone: 646-835-0890
Fax: 212-986-7691
Map & Directions