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A key component of the Dodd-Frank Act is headed to the Supreme Court for review. The court will decide if internal whistleblowers who have not yet reported potential violations to the SEC are protected under the anti-retaliation statutes of Dodd-Frank.

The Supreme Court review is necessary to resolve a split in the lower appellate courts stemming from a case brought by a former Digital Realty Trust Inc executive. In the case, Paul Somers a former employee of Digital Realty seeks to sue for alleged retaliation. Digital Realty had protested a decision by the Ninth Circuit that found that internal whistleblowers were protected under the Dodd-Frank Act’s anti-retaliation statutes, even if they had not yet reported potential violations to the SEC.

Somers’s lawyer, Daniel L. Geyser of Stris and Maher was not surprised by the Supreme Courts willingness to hear the case, although he strongly believed that the Ninth circuits interpretation of the law was in line with the scope of Dodd-Frank as written by Congress.

The Securities and Exchange Commission announced on September 28, 2016 that Anheuser-Busch InBev agreed to pay $6 million to settle charges that the company violated the Foreign Corrupt Practices Act (FCPA) and attempted to silence a whistleblower who reported the misconduct.

An SEC investigation found that the company used third-party sales promoters to make improper payments to government officials in India to increase the sales and production the company’s products in India.  According to the SEC order, Anheuser-Busch InBev repeatedly ignored employee complaints, had inadequate internal accounting controls to detect and prevent the improper payments, and failed to ensure that transactions involving the promoters were recorded properly in its books and records.

Additionally, according to the order, the SEC found that Anheuser-Busch InBev entered into a separation agreement that stopped an employee from continuing to voluntarily communicate with the SEC about the potential FCPA violations due to a substantial financial penalty that would be imposed for violating strict non-disclosure terms.

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