Unwitting Blow To Internal Corporate Compliance Programs

Law360, New York (August 8, 2013, 7:07 PM EDT) -- Despite a string of earlier district court decisions holding that the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 protected not only whistleblowers who reported violations of the nation's securities law to the U.S. Securities and Exchange Commission but also those who reported such violations only to their employers, the Fifth Circuit recently held that the law provides no protection to employees who report only internally.

The harm that the court's decision in Asadi v. GE Energy (USA) LLC does to whistleblowers is obvious since it limits the circumstances under which they are protected by the anti-retaliation provisions of...

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