9th Circ. Expanded Whistleblower Protections, Justices Told. Exposing Misconduct.

9th Circ. Expanded Whistleblower Protections, Justices Told

August 25, 2017

Digital Realty Trust Inc. told the U.S. Supreme Court on Thursday that the Ninth Circuit erred in finding the Dodd-Frank Act protects whistleblowers who haven’t reported to the U.S. Securities and Exchange Commission, arguing the appellate court flouted Congressional intentions.
The Supreme Court in June granted the real estate investment trust’s petition to review a Ninth Circuit decision finding former Digital Realty executive Paul Somers can sue over the company’s alleged retaliation against him, agreeing to resolve a circuit split over whether the Dodd-Frank Act’s anti-retaliation provision protects whistleblowers who report suspected securities law violations internally even if they haven’t gone to the SEC.

In its opening brief Thursday, Digital Realty argued that the Ninth Circuit and the SEC have improperly adopted a definition of whistleblower more expansive than what Congress intended, diminishing the role of a parallel whistleblower regime set out in the Sarbanes-Oxley Act.

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