Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by Law.com, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!

X

Judge rules that Dodd-Frank does not protect foreign whistleblowers

Former General Electric executive was fired after reporting alleged FCPA violations

A former General Electric Co. (GE) employee who says he was fired after reporting potential corruption is not protected by Dodd-Frank whistleblower provisions, a federal judge ruled Thursday. U.S. District Judge Nancy Atlas said that the law’s anti-retaliation measures do not apply to Khaled Asadi, as his whistleblowing took place abroad.

In June 2010, while Asadi was working for GE’s Iraq operations, one of his contacts in the Iraqi government allegedly voiced concerns about the company’s hiring of Iman Mahmood. Mahmood supposedly had “close ties” to Iraq’s deputy minister of electricity Ra’ad al-Haris, who was handling negotiations for a $250 million sole-source contract with GE, and the perceived ties between the two led Asadi to voice concerns that the electric company had violated the Foreign Corrupt Practices Act.

GE fired Asadi the following year following a negative performance review. In response, Asadi filed a civil suit against his former employer, arguing that his termination was illegal under Dodd-Frank’s whistleblower protections. (GE maintains that Asadi’s firing was unrelated to his allegations).

Atlas, however, disagreed, citing a Supreme Court opinion in Morrison v. National Australia Bank Ltd., which she said “reaffirmed the ‘longstanding principle’ that Congress’ legislation doesn’t apply outside the United States ‘unless a contrary intent appears.’”

Read the full story at Reuters.

Alanna Byrne

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.