District Court Dismisses Whistleblower Retaliation Claim

The U.S. District Court for the Southern District of New York recently dismissed a whistleblower anti-retaliation action brought against an investment manager and certain affiliates for failure to state a claim. The person who brought the claim alleged that he was a whistleblower under the relevant provisions of Section 21F of the Securities Exchange Act of 1934 because he had provided information to the SEC on a conference call during an SEC investigation. The court dismissed the complaint on the grounds that the party was not a whistleblower for purposes of the anti-retaliation provisions because he had not provided information to the SEC in the requisite manner. This article analyzes the circumstances leading up to the lawsuit and the court’s decision, with insights from Anne E. Beaumont, partner at Friedman Kaplan Seiler & Adelman, and Philip Moustakis, counsel at Seward & Kissel. For coverage of a similar action, see “Former Employee Files Dodd-Frank Whistleblower Suit Against Vertical Capital” (Dec. 18, 2014).

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