It was probably never a good idea to fire a whistleblower who reported your company’s wrongdoing internally, as doing so might be said to incentivize a little phone call to Preet Bharara or Mary Jo White. Now, it’s a doubly bad idea, because they can totally sue you for it.
A federal appeals court on Thursday ruled that corporate whistleblowers who report possible wrongdoing internally to their company before alerting securities regulators are protected by retaliation provisions of the 2010 Dodd-Frank financial reform law….
Judge Jon Newman, who wrote Thursday’s opinion, suggested that expanding the protections would chiefly benefit auditors and attorneys who are barred from reporting alleged wrongdoing to the SEC until they’ve brought it to their employer’s attention.
Appeals Court: Whistleblowers Don’t Have to Call the SEC [WSJ Law Blog]