Recent SEC Order Reiterates Need For Affirmative Whistleblower Exclusion

Everyone generally agrees that people and organizations should be able to protect their proprietary and valuable information. But one area where we've seen legislative fretting is when that principle potentially impedes reporting wrongdoing to the government. As we have previously blogged, Congress and many state legislatures are exploring (or, in some cases, already enacted) legislative protections for reporting suspected misconduct to the government. And, at the federal level, Congress enacted the Defend Trade Secrets Act, which provides immunity for the disclosure of a trade secret if made in confidence to an attorney or government official for the purpose of investigating a suspected violation of law.