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Internal Whistleblowers

By Matthew B. Schiff and Kathryn C. Nadro

On June 26, 2017, the Supreme Court granted certiorari in Digital Realty Trust Inc. v. Somers, 16-1276, to review a Ninth Circuit decision regarding Securities and Exchange Commission (SEC) whistleblowing protections. The Court's ruling is highly anticipated, as it will clarify the landscape for whistleblower protections.

Somers was VP of Digital Realty. He was terminated from his position after reporting internally certain alleged eliminations of internal corporate controls in violation of the Sarbanes-Oxley Act (SOX). Somers sued under the anti-retaliation provision of SOX, alleging that he was “fired for making internal complaints protected under the Sarbanes-Oxley Act.” Somers did not report this alleged misconduct to the SEC. See http://bit.ly/2xiLJGW.

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