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:

• First Circuit Denies Extension of SOX Anti-Retaliation Protection to Federal Statutes within the Enforcement Power of the SEC
• Second Circuit Requires Showing of “Retaliatory Intent” under SOX Anti-Retaliation Provision
• Second Circuit Requires an SEC Covered Action as Prerequisite to Award for Related Actions
• SEC Adopts Amendments to Whistleblower Rules Providing Additional Incentives and Certainty to Whistleblowers
• SEC Awards Approximately $40 Million to Whistleblowers in Q3 2022

First Circuit Denies Extension of SOX Anti-Retaliation Protection to Federal Statutes within the Enforcement Power of the SEC

In Baker v. Smith & Wesson, Inc., No. 21-2019, 40 F.4th 43 (1st Cir. 2022), the First Circuit refused to extend SOX’s anti-retaliation protection to a whistleblower’s claim involving violation of “statutes within the enforcement power of the SEC.” The plaintiff, a former employee of Smith & Wesson (S&W), reported certain illegal conduct by S&W employees that he believed violated a provision of the Foreign Corrupt Practices Act addressing accounting practices and internal controls. Section 1514A of SOX limits whistleblower anti-retaliation protection to claims about certain statutes relating to fraud as well as “any rule or regulation of the...

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