Whistleblower Claims Under SOX And Dodd-Frank: Recent Developments - May 2016

In 2002, Congress passed the Sarbanes-Oxley Act ("SOX"), which extends whistleblower protections to certain individuals who report conduct they reasonably believe constitutes a violation of federal mail, wire, or bank fraud, any rule or regulation of the Securities and Exchange Commission ("SEC"), or any provision of federal law relating to shareholder fraud. In 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"). Dodd-Frank prohibits employers from retaliating against employees for disclosing information as required or protected under SOX, the Securities Exchange Act of 1934, and any other law, rule, or regulation subject to the jurisdiction of the SEC. Dodd-Frank also required the SEC to implement a new whistleblower program – the so-calledbounty program– that pays to whistleblowers cash awards of between 10% and 30% of amounts the SEC recovers based on the whistleblower's report.