Business Insurance quoted Phillips & Cohen partner Sean McKessy in its story on the Supreme Court’s ruling in Digital Realty Trust v Somers, which said that whistleblowers are not protected by the Dodd-Frank Act unless they report their concerns directly to the Securities and Exchange Commission.
This is an instance of “be careful what you wish for,” said Sean X. McKessy, a former chief of the SEC whistleblower office who is now a partner with plaintiff law firm Phillips & Cohen L.L.P.
People who are aware of wrongdoing are now being told if they fail to report it to the SEC, they do so “at their own peril,” said Mr. McKessy. It provides an incentive to those who would “otherwise be inclined to report internally,” to go to the SEC instead, he said. “I don’t think that’s what anyone wanted.”
As a result of this ruling, “I expect we’ll see an uptick in the number of people who come to us,” to represent them before the SEC, he said.