Chief Risk Officer’s Whistleblower Claims Move Forward

On May 8th, a U.S. District Court held that the chief risk officer of an insurance company could sue her employer for violations of the Sarbanes-Oxley Act and the Dodd-Frank Act. Plaintiff claims she was terminated in violation of the anti-retaliatory discharge provisions of the Sarbanes-Oxley Act and the whistleblower protection provisions of the Dodd-Frank Act when she reported to her supervisors her belief that SEC rules had been violated. On defendant’s motion for judgment on the pleadings, the Court held that plaintiff had engaged in a protected activity by communicating her beliefs to management. The fact that making such reports was part of her job as chief risk officer did not change that result. In addition, the Court found that it would not be futile for plaintiff to amend her Dodd-Frank Act claims. Yang v. Navigators Group.