SEC headquarters inWashington. Credit: Diego M. Radzinschi

The U.S. Supreme Court on Wednesday narrowed the scope ofwhistleblower protection under the Dodd-FrankAct, ruling unanimously that employees must first report allegedsecurities violations to the U.S. Securities and ExchangeCommission.

The decision in Digital Realty v. Somers stated thatsimply complaining of wrongdoing within the employee'scompany does not trigger the protections of the law, therebyinsulating securities firms from at least some whistleblowerlawsuits.

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Tony Mauro

Tony Mauro, based in Washington, covers the U.S. Supreme Court. A lead writer for ALM's Supreme Court Brief, Tony focuses on the court's history and traditions, appellate advocacy and the SCOTUS cases that matter most to business litigators. Contact him at [email protected]. On Twitter: @Tonymauro

Marcia Coyle

Marcia Coyle, based in Washington, covers the U.S. Supreme Court. Contact her at [email protected]. On Twitter: @MarciaCoyle