Second Circuit: Dodd-Frank Protects Internal Whistleblowers

Today, the Second Circuit issued its highly anticipated decision in Berman v. Neo@Ogilvy, ruling (in a 2-1 decision) that Dodd-Frank's whistleblower protection provision applies to internal complaints (i.e., complaints that are made by employees within the company and not to the SEC).  This creates a circuit split; it is directly at odds with the Fifth Circuit's 2013 decision in Asadi v. G.E. Energy (USA), L.L.C.  As a result of the clear split, the question of whether purely internal complaints are protected by Dodd-Frank could ascend to the U.S. Supreme Court for resolution.

Background

Plaintiff-Appellant Daniel Berman (Berman) was the finance director of Defendant-Appellee Neo@Ogilvy (Company).  He was responsible for the Company's financial reporting and compliance with GAAP, as well as internal accounting procedures of the Company and its parent.  He alleged that he discovered various practices that amounted to accounting fraud, and he reported them