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Supreme Court Ties SEC's Hands in Whistleblower Case

By Janice G. Inman
April 01, 2018

With its February 21 decision in Digital Realty v. Somers, No. 16-1276, the U.S. Supreme Court dealt a blow to companies interested in learning of their own securities violations before the government gets the heads-up. The case's outcome means whistleblowers who might have reported violations internally will be incentivized to bypass their own companies' compliance mechanisms in favor of immediate reporting to the U.S. Securities Exchange Commission (SEC).

The Conscientious Employee

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