On October 15, 2024, the U.S. Court of Appeals for Third Circuit declined to enforce a preliminary reinstatement order issued by OSHA in favor of two purported whistleblowers under SOX, holding that the former employees lost Article III standing after they abandoned the administrative process to instead challenge their terminations though a separate civil action in federal court. Gulden v.
SEC Announces Slew of Enforcement Actions Regarding Whistleblower Protection Rule
The SEC recently announced the settlement of multiple enforcement actions for violations of its whistleblower protection rule, which prohibits “any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation.” SEC Rule 21F-17(a). These settlements resulted in the targeted companies paying fines exceeding $3 million in the aggregate.
As we have previously
DOJ Announces Development of a Pilot Whistleblower Rewards Program
On March 7, 2024, Deputy Attorney General Lisa Monaco announced that the U.S. Department of Justice (“DOJ”) is creating a pilot whistleblower rewards program, which will be developed and implemented over the next 90 days, with a formal start date to be announced later in 2024.
According to the announcement, individuals who assist the DOJ in “discover[ing] significant corporate or
2nd Circuit Court of Appeals Refers Attorney Who Cited Nonexistent Case Provided by ChatGPT for Discipline Investigation
In its January 30, 2024, decision in Park v. Kim, the U.S. Court of Appeals for the Second Circuit responded to an attorney who submitted a reply brief in the appeal that cited a nonexistent case that, as it turns out, the attorney obtained through ChatGPT.
The Court informed Counsel it could not locate the case and requested she
CFTC Releases FY 2023 Annual Report on its Whistleblower Program
The Commodity Futures Trading Commission (“CFTC”) recently released its statutorily mandated 2023 Annual Report detailing the status of its whistleblower program for the fiscal year ending on September 20, 2023.
The CFTC’s whistleblower program pays awards to eligible whistleblowers who voluntarily provide original information about violations of the Commodity Exchange Act (“the Act”) that leads either to a “covered judicial
Eleventh Circuit Affirms Rejection of Employee’s SOX Claim for Lack of Protected Activity
On September 25, 2023, the U.S. Court of Appeals for the Eleventh Circuit affirmed the Department of Labor’s Administrative Review Board’s rejection of an employee’s Sarbanes–Oxley Act (SOX) retaliation claim, holding the employee did not engage in protected activity because he failed to establish that he had an objective, reasonable belief that the employer engaged in conduct that violated SOX.
Illinois Federal Court Grants Employer Summary Judgment on Several Types of Whistleblower Retaliation Claims
On May 5, 2023, the U.S. District Court for the Northern District of Illinois granted a defendant-employer’s motion for summary judgment on whistleblower retaliation claims, holding that the company demonstrated that it would have terminated Plaintiff’s employment even in the absence of any alleged protected activity due to his refusal to cooperate in the company’s efforts to confirm that he
District of NJ: Federal Courts Lack Jurisdiction to Enforce Preliminary Reinstatement Orders Under SOX
On April 19, 2023, the U.S. District Court for the District of New Jersey granted the defendant-employer’s motion to dismiss a complaint seeking court enforcement of a preliminary reinstatement order after determining that the court lacked jurisdiction to enforce such orders. Gulden v. Exxon Mobil Corp., No. 22-cv-7418.
Background
As we previously reported, on October 7, 2022,
SEC Announces Record-Shattering $279 Million Award to Whistleblower
On May 5, 2023, the SEC announced an award of nearly $279 million to a whistleblower who provided the SEC with information and assistance that led to the successful enforcement of SEC and related actions. This enormous award is the largest-ever in the history of the whistleblower program and is more than double the previous record $114 million award issued
Illinois Federal Court Grants Motion to Dismiss SOX Whistleblower Claim
On February 28, 2023, the U.S. District Court for the Central District of Illinois granted a defendant-employer’s motion to dismiss a SOX whistleblower retaliation claim, holding that the plaintiff failed to adequately plead that he engaged in protected activity because his alleged attempt to raise safety concerns did not plausibly allege that he subjectively believed that he was reporting fraud.