Bradley attorney Scarlett Nokes was quoted in FundFire on a ruling from the Supreme Court to limit Dodd-Frank protections for whistleblowers reporting suspected securities law violations. The implications for employers may make it more difficult for companies to handle such matters internally.
The Supreme Court ruling will make it "harder for employers to incentivize reporting internally before employees go to the SEC," Nokes said.
"On the [case] level, the employer won, but on the macro level, the employers seem most concerned about the implications of the decision," Nokes explained.
"For employers, the safe assumption now would be to assume when they get [whistleblower] complaints, that the SEC has already been notified," to the extent that the employee has talked to a lawyer very early on in the process, she added.
As such, "rigorous compliance guidelines will continue to be important," for asset managers, as well as working with outside counsel when potential concerns arise. "And retaliation cannot be tolerated," Nokes said.
The complete article, “Whistleblower Ruling Opens New Can of Worms for Companies,” appeared on FundFire on March 7, 2018. (login required)