Litigation: Whistleblower retaliation claims: Two trends in whistleblower activity have created new hazards for companies

The laws protecting and rewarding corporate whistleblowers have increased in scope and number in recent years, as we described in our most recent article. Even more dramatically, courts and lawmakers have broadened the definition of protected whistleblower activity—that is, the type of conduct that triggers legal protection against retaliation. These two trends taken together have broadened the universe of potential whistleblowers and heightened the risk of corporate liability for claimed retaliation.

In March 2013, the U.S. Court of Appeals for the 3rd Circuit handed down the most expansive definition of protected whistleblower activity to date, ruling in Wiest v. Lynch that an employee who expresses “reasonable belief” of an accounting irregularity is a whistleblower under the securities laws, even if his statement lacks any clear connection between the accounting error and shareholder fraud.

Originally published in Inside Counsel on May 30, 2013.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Dodd-Frank, False Claims Act, OSHA, Protected Activity, Retaliation, Sarbanes-Oxley, Whistleblowers

Published In: Civil Remedies Updates, General Business Updates, Labor & Employment Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morvillo Abramowitz Grand Iason & Anello P.C. | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »