U.S. District Judge Pauley Rules That Dodd-Frank Whistleblower Provisions Do Not Apply Outside the United States (with Lofchie Comment)

U.S. District Judge William Pauley has dismissed the lawsuit brought against Siemens A.G. by a former compliance officer who claimed that Siemens' Chinese subsidiary used kickbacks to boost medical equipment sales, ruling that Dodd-Frank's anti-retaliation protections for whistleblowers do not apply outside the United States.

Lofchie Comment: The judge takes a dim view of broad claims of the extra-territorial application of U.S. law, even in a situation in which the court accepts, for the sake of argument, an allegation of wrongdoing. This obviously has direct significance for whistleblowers, but also raises further questions as to the vulnerability of the CFTC's broad assertion of global jurisdiction under Dodd-Frank.

See: Meng-Lin Liu v. Siemens A.G., Memorandum and Order.Related News: SEC Enforcement Advisor: SEC Announces Third Whistleblower Award (with C&F Memo) (with YouTube Video) (October 11, 2013).Related Cadwalader Articles: The Dodd-Frank Whistleblower Program: An Analysis of the SEC's Second Annual Report, Best Practices for Dealing with Whistleblowers, and Recent Cases Interpreting the Scope of the Anti-Retaliation Provisions of the Dodd-Frank Act; The Dodd-Frank Whistleblower Provisions: Considerations for Effectively Preparing for and Responding to Whistleblowers; New Whistleblower Compensation Enacted for Securities and FCPA Disclosures; Financial Reform Bill Compensates Whistleblowers Assisting the SEC.