Reports To FBI And Internally Count For SEC Whistleblower
On October 25, 2013, a United States District Court in the Sothern District of New York ruled that a SEC whistleblower who reported alleged SEC violations to the FBI and internally to his employer was a whistleblower under the anti-retaliation provisions of Dodd-Frank. In Rosenblum v Thomson Reuters (Markets) LLC, Judge Scheindlin held that Mr. Rosenblum’s disclosures were protected activity within the meaning of 15 U.S.C. § 78u.
The case against Thomson focused on whether Thompson’s release of consumer data at tiered stages to certain subscribers before it was released to the public constituted insider trading. Rosenblum alleged that he had reported his concerns to both the FBI and internally to his supervisors. The Court held that at the motion to dismiss stage, Rosenblum “has adequately alleged that Thomson’s decision to terminate him was motivated, in part, by reporting the alleged violations that are protected by Section 806 of the SOX, and has thus plausibly stated a claim under Section 78u–6(h)(1)(A)(iii).” The Court also issued a ruling dismissing Mr. Rosenblum’s request for punitive damages.