Supreme Court Declines To Broaden Whistleblower Protections (reuters.com)

Posted by msmash on Friday February 23, 2018 @06:00AM from the tough-luck dept.

The U.S. Supreme Court this week refused to broaden protections for corporate insiders who call out misconduct, ruling they must take claims of wrongdoing to the Securities and Exchange Commission in order to be shielded against retaliation. From a report: The justices ruled 9-0 in favor of Digital Realty Trust, throwing out a lawsuit brought against the California-based real estate trust by a fired former employee who had reported alleged wrongdoing only internally and not to the SEC. The 2010 Wall Street reform law known as the Dodd-Frank Act is unambiguous in offering no protection from retaliation such as firing or demotion to employees who report claims of securities law violations only in-house, the court ruled.

1 of 61 comments (clear)

Min score:

Reason:

Sort:

Worst possible ruling for businesses and workers by Falconnan · 2018-02-23 06:56 · Score: 4, Insightful

This was actually the worst ruling the private sector could get. Now it is explicit that a corporation cannot rely on its employees to in any way report errors or criminal activity by other employees to get in front of an SEC violation. Think that through for a moment. There is now a disincentive for internal reporting. If I was an owner or board member of any kind of financial institution, I would be pissed! Why it's bad for workers seems obvious.