DODD-FRANK WHISTLEBLOWER DECISION

Kramer v. Trans-Lux Corp., No. 3:11cv1424 (SRU) (D. Conn. Sept. 25, 2012)

A Federal Court in a recent case gave an expansive interpretation of the whistleblower protections under the Dodd-Frank Act. Some fear that this ruling will allow more employees to qualify as whistleblowers and, therefore, be afforded the protections of Dodd-Frank from retaliation by their employer. A “whistleblower” is any individual who provides information relating to a violation of the securities laws to the Securities Exchange Commission (“SEC”). Dodd-Frank also protects whistleblowers from retaliation by their employer. No employer can fire, demote, suspend, threaten, or harass, a whistleblower for providing information to the SEC or for assisting in any investigation by the SEC based on the information provided or for making disclosures as required in the Sarbanes-Oxley Act of 2002, the Securities Exchange Act of 1934 and any other law or regulation. Whistleblowers who bring a retaliation lawsuit, under Dodd-Frank, against their employer can potentially be reinstated, be awarded two times the amount of back pay owed to the them (plus interest) and can be compensated for their attorneys’ fees.

For more information on “whistleblower” protections under the Dodd-Frank Act, please contact the employment lawyers of Fitapelli & Schaffer, (212) 300-0375, to schedule a free consultation.