Whistleblower Developments is a periodic report covering significant cases, decisions, proposals, and legislation related to whistleblower statutes and how they may impact your business. Recent developments include:
As noted in our most recent newsletter, in SEC v. Collector's Coffee Inc., 19-Civ-4355 (S.D.N.Y. July 21, 2021), the United States District Court for the Southern District of New York in July 2021 rejected the defendants' claim that SEC Rule 21F-17, which prohibits impeding individuals from communicating with the SEC regarding potential securities laws violations by relying on confidentiality agreements, violated the SEC's rulemaking authority. On November 17, 2021, the court granted the SEC's motion for summary judgment on the Rule 21F-17 count. The defendants had entered into settlement agreements with investors that provided that the investors would not initiate any communications with any regulatory agency, including the SEC. The defendants enforced these agreements, suing an investor for breach of the confidentiality provision after the investor communicated with the SEC. In its summary judgment opinion, the court first affirmed its prior conclusion that Rule 21F-17 was an appropriate exercise of the SEC's rulemaking authority and does not violate the First Amendment. Second, the court found that the defendants' conduct...
False sexual or rape allegations can have devastating consequences for the accused, including reputational damage, loss of employment and emotional trauma. In Nigeria, current legislation focuses ...