Securities Whistleblower Roundup: Retaliation Lawsuit Against Thompson Reuters Gets Go Ahead & SEC Issues Its Sixth Bounty Award

The U.S. District Court for the Southern District of New York has rejected Thomson Reuters (Markets) LLC’s motion to have a whistleblower retaliation case dismissed. Instead, Judge Shira A. Scheindlin agreed with the Securities and Exchange Commission’s rule that a whistleblower doesn’t have to tell the regulator to be able to qualify for Dodd-Frank Wall Street Reform and Consumer Protection Act. The judge, however, did throw out the plaintiff’s claim for punitive damages, which he says Dodd-Frank doesn’t allow.

The plaintiff, Mark Rosenblum, is an ex-redistribution specialist who was allegedly let go from his job after he suggested that changing up the distribution time for certain consumer survey data to certain customers was tantamount to insider trading. Rather than telling the SEC he reported his worries internally and to the FBI.

Rosenblum believes he was fired because of what he reported and he says this is unlawful. Thomson Reuters tried to get the lawsuit tossed out claiming that because Rosenblum didn’t tell the SEC and the company, he therefore wasn’t protected under Dodd-Frank. Thomson Reuters cited the Fifth Circuit’s ruling in Asadi v. GE Energy USA, LLC that determined that Dodd-Frank only gives whistleblower protection to those who notify the SEC. That said, the appeals court also admitted that its interpretation wasn’t in line with the SEC or of other courts .

Meantime, the SEC has just awarded a whistleblower $150,000 for information this person gave that allowed the regulator to stop a securities scam. The agency said it issued the reward because the whistleblower gave pertinent information that not only assisted in its investigation but prevented more investors from being harmed.

The same day, however, the Commission denied another potential whistleblower’s claim, this one related to SEC v. Advanced Techs. Grp. LTD. The SEC claims that ATG and those operating it took part in unregistered nonexempt securities over a nine-year period. However, the regulator said the whistleblower who was involved wasn’t eligible for awards because the tips were turned in before Dodd-Frank was enacted.

Shepherd Smith Edwards and Kantas, LTD LLP represents stockbroker fraud clients throughout the US. We have helped thousands of investors get their losses back.

W-B Suit Against Thomson Reuters Proceeds; Prior Report to SEC Not Needed, BNA/Bloomberg, October 29, 2013

Office of the Whistleblower, SEC
Dodd-Frank Wall Street Reform and Consumer Protection Act (PDF)

More Blog Posts:
California AG Files Lawsuit Against JP Morgan Chase Alleging Debt Collection Abuse Over 100,000 Credit Card Cases, Stockbroker Fraud Blog, May 16, 2013

Standard Poors Wants DOJ’s Mortgage Debt Lawsuit Against It Tossed, Institutional Investor Securities Blog, April 24, 2013

SEC Whistleblower Office Will Place More Emphasis on Anti-Retaliation Provisions and Publicity This Year, Institutional Investor Securities Blog, January 29, 2013