Employee Files Dodd-Frank Whistleblower Claim in Federal Court. Can the Employer Still Force the Claim into Arbitration?

On January 27, 2014, the Southern District of New York handed employers a major victory in the fight to contain the explosion of litigation under the Dodd-Frank whistleblower provisions. In Murray v. UBS Securities, LLC, No. 2:12-cv-05914-KPF (S.D.N.Y. Jan. 27, 2014), the Court forced plaintiff’s whistleblower claims into arbitration, holding that his dispute did not “arise under” the Sarbanes Oxley Act (“SOX”) even though he alleged that his whistleblowing activity was required by that statute. Because plaintiff chose to file his claim directly in district court under Dodd-Frank, rather than through the Department of Labor as would have been required under SOX, he could not take advantage of the anti-arbitration provision applicable to SOX whistleblower claims.

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