Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

MORRISON & FOERSTER PROVIDES SHORT ANALYSIS OF SUPREME COURT RULING IN KEY WHISTLEBLOWER CASE

The Supreme Court issued a ruling this week in a closely watched whistleblower case, and Morrison & Foerster has provided a quick analysis below by one of the country’s leading authorities on whistleblower statutes.

Daniel Westman
Daniel Westman

A 6-3 ruling in Lawson v. FMR LLC held that workers of private firms that contract with publicly traded companies are protected by federal whistleblower laws. If they see something, they can say something with the same impunity as direct employees – and can be subject to the same rewards.

In reversing a First Circuit decision, the Supreme Court majority held that whistleblower provisions of the Sarbanes-Oxley Act cover employees of private contractors and even subcontractors that are hired by publicly traded companies. The case at issue involves the mutual fund industry, where nearly all individual funds “are structured so that they have no employees of their own but are managed by independent investment advisors.”

The short piece was co-written by MoFo partner Daniel Westman, lead author of a primary legal textbook on whistleblower laws.

Mr. Westman writes that “the Court’s holding extends far beyond the mutual fund industry to cover other contractors, including law and accounting firms.” He provides the following action steps:

  • Privately owned companies that have contracts or subcontracts with publicly traded companies may wish to consider revising any policies against retaliation to include protection for employees who raise concerns about shareholder fraud at the publicly traded companies to which services are provided by the private company.
  • Human resources or legal personnel at privately owned businesses may wish to train management about the ruling to ensure that negative personnel actions are not based on retaliation for raising concerns pursuant to such revised policies.
  • Privately owned companies should be aware of the remedies available under §1514A, particularly reinstatement. Unlike most federal and state employment legislation, the preferred remedy under §1514A is reinstatement of employment, which can be ordered after an administrative investigation by the federal Occupational Safety and Health Administration, and before a full hearing on the merits before an Administrative Law Judge from the U.S. Department of Labor.