Employment Litigation · Primary-source case analysis

Digital Realty: Dodd-Frank Whistleblower Protection Required Reporting to the SEC

Decision: Supreme Court of the United States, No. 16-1276, decided February 21, 2018. Document: Published United States Reports opinion.

Digital Realty Trust, Inc. v. Somers addressed a retaliation claim by an employee fired after reporting suspected securities violations to senior management but before reporting them to the SEC.

The employee reported internally but not to the SEC

Somers alleged that he reported suspected securities-law violations to senior management and was terminated soon afterward. He did not alert the SEC before his discharge.

Dodd-Frank supplied a specific whistleblower definition

The statute defines a whistleblower as an individual who provides information relating to a securities-law violation to the Commission. The Court applied that definition throughout the same statutory section.

Protected conduct and protected status were separate questions

The anti-retaliation clauses describe conduct protected once a person qualifies as a statutory whistleblower. Internal disclosure alone did not place Somers inside the threshold protected category.

The SEC’s broader regulation could not override the text

Because Congress spoke directly, the Court declined to defer to an SEC rule that extended anti-retaliation coverage to some non-SEC reporters. It reversed and remanded.

Key takeaways

Discuss the procedural record

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