Ruling CPA Not Whistlebower May Have Chilling Effect
Bloomberg BNA Securities Law Daily
July 13, 2017
Jordan A. Thomas comments on court’s dismissal of an anti-retaliation suit
A former Grant Thornton LLP CPA was allegedly fired for reporting accounting irregularities. According to lawyers, a recent district court’s dismissal could have a chilling effect on potential whistleblowers.
As the judge indicated, a would-be whistleblower who works for a private company isn't protected by the Dodd-Frank Act or the Sarbanes Oxley Act “simply because her employer happens to contract with public companies on matters unrelated to the alleged whistleblowing.”
“There is no question that this ruling is troubling and narrows the circumstances in which a CPA could be a protected whistleblower,” said Jordan A. Thomas, Chair of the Whistleblower Practice at Labaton Sucharow.