The U.S. Court of Appeals for the Second Circuit answered one important Dodd-Frank Act question, while avoiding answering another, in last week’s ruling on Liu Meng-Lin v. Siemens. In dismissing the plaintiff’s case on August 14, a panel of judges agreed with limits on the abilities of whistleblowers outside the U.S. to sue over alleged retaliation, but left the question open as to whether or not whistleblowers who are fired before bringing their complaints to the U.S. Securities and Exchange Commission can bring antiretaliation claims under the Dodd-Frank Act.
While the dismissal in the Siemens case might not have resolved one of these two important whistleblower issues, it is still a decision worth noting for multinational companies that fear the power of the whistleblower. And there may be much to fear, as the government has deep pockets when it comes to whistleblowing rewards. According to a recent report from Davis Polk, around $739 million in possible awards is set aside in SEC and U.S. Commodity Futures Trading Commission coffers—although only a small percentage of it has been paid out.
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