• U.S. District Court Retroactively Applies Dodd-Frank Whistleblower Restriction to Bar Arbitration Provision in Employment Agreement
  • March 15, 2011 | Authors: Thomas R. Bundy; Roshal Erskine; Christopher W. Hammond; Allegra J. Lawrence-Hardy
  • Law Firms: Sutherland Asbill & Brennan LLP - Washington Office ; Sutherland Asbill & Brennan LLP - Atlanta Office ; Sutherland Asbill & Brennan LLP - Washington Office ; Sutherland Asbill & Brennan LLP - Atlanta Office
  • In Pezza v. Investors Capital Corp., a Massachusetts federal district court held recently that Section 922 of the Dodd-Frank Act, which amends the Sarbanes-Oxley Act (SOX) whistleblower protections to bar enforcement of pre-dispute arbitration agreements in whistleblower challenges, applies retroactively. Accordingly, the Pezza court denied the defendant employer’s motion to compel arbitration, invalidating the pre-dispute arbitration agreement that was executed before Dodd-Frank’s enactment.