Second circuit issues key decision on the extraterritorial applicability of the Dodd-Frank whistleblower protection provisions

On Aug 14, 2014, the Second Circuit Court of Appeals issued a key decision in Liu v. Siemens AG, No. 13-4385-cv, on the extraterritorial applicability of the whistleblower protection provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The Second Circuit held tha...

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Bibliographic Details
Published in:The Investment Lawyer 2014-11, Vol.21 (11), p.25
Main Authors: Weinstein, Martin, Meyer, Robert, Clark, Jeffrey
Format: Article
Language:English
Subjects:
Electronics industry
Extraterritoriality
Federal court decisions
Jurisdiction
Noncitizens
Officials and employees
Provisions
Regulation of financial institutions
Regulatory agencies
Retaliation
State court decisions
Stock exchanges
Stock-exchange
Wall Street
Wall Street Reform & Consumer Protection Act 2010-US
Whistle blowing
Whistleblowing
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Summary:On Aug 14, 2014, the Second Circuit Court of Appeals issued a key decision in Liu v. Siemens AG, No. 13-4385-cv, on the extraterritorial applicability of the whistleblower protection provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The Second Circuit held that Dodd-Frank's whistleblower retaliation provision does not apply extraterritorially, and thus foreign nationals employed by foreign companies abroad cannot claim retaliation under Dodd-Frank where the events at issue allegedly occurred abroad, even if the company in question has securities traded on a US stock exchange. The decision is particularly important for cases involving the Foreign Corrupt Practices Act (FCPA), as well as for other securities cases involving issues arising outside the US. In interpreting statutes, courts, including the US Supreme Court, apply a "presumption against extraterritoriality." Under the presumption against extraterritoriality, courts interpret statutes as applying "only within the territorial jurisdiction of the US" unless "a contrary intent appears."
ISSN:1075-4512