House Quoted on Implications of Whistleblower Ruling

31 March 2015 Corporate Disputes News

Corporate Disputes

Partner Bryan House was quoted in a Corporate Disputes article, “Dodd-Frank: Could Third Circuit Ruling Gag Whistleblowers Long-Term?” which appeared in the April – June 2015 issue. The article discussed the significance and implications of Khazin v. TD Ameritrade Holding Corp., et al., a Court of Appeals for the Third Circuit case, which held that Dodd-Frank Act whistleblower retaliation claims are not exempt from pre-dispute arbitration agreements.

House was quoted saying, “As an appellate decision, Khazin is no doubt a significant decision in a year in which many decisions favored whistleblowers. It was not entirely unexpected, however, as two district courts that have considered the issue ruled the same way.”

House continued to discuss the effects of the ruling and said, “The incredible amount of regulation continues to increase costs for companies, and the full panoply of regulations suggested by Dodd-Frank have not yet been written. Businesses and conservative groups have called for reform of Dodd-Frank virtually since the day it passed. With the new Republican controlled Congress, the efforts to roll back some of Dodd-Frank’s regulation have begun in earnest in recent weeks. But the Act’s whistleblower provisions are not the subject of this discussion. Under these circumstances, I very much doubt that the Khazin decision, even though many believe it highlights a gap in the statute’s coverage, will create enough momentum in Congress to amend the statute to make it more employee friendly.”

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