SEC brief supports fired in-house lawyer's suit against Vanguard, says he qualifies as whistleblower
The federal government has intervened to file a brief in support of a former in-house lawyer’s wrongful termination suit against Vanguard Group.
The mutual fund giant contends that plaintiff David Danon doesn’t qualify for whistleblower protection, because he only sought it after learning that he would be let go by Vanguard. However, Danon, supported by the U.S. Securities & Exchange Commission’s filing Monday, is arguing that he should nonetheless qualify for protection against retaliation under the Dodd-Frank financial reform law of 2010 because he raised concerns about Vanguard’s approach to taxes, the Wall Street Journal (sub. req.) reports.
Vanguard is now seeking to dismiss the Eastern District of Pennsylvania case, which Danon filed last year. At issue is whether a whistleblower must first go to the SEC to qualify for protection against employer conduct.
In an earlier suit filed in New York state court, Danon sought whistleblower fees for disclosing some $1 billion in alleged federal and state tax underpayment by Vanguard over a period of decades.
A judge dismissed that suit last year, finding that Danon, who was working as in-house counsel for Vanguard when he filed suit in 2013, violated legal ethics rules by disclosing confidential attorney-client information about Vanguard.
