The U.S. Supreme Court on Wednesday narrowed the scope of whistleblower protectionunder the Dodd-Frank Act, ruling unanimously that employees must first report alleged securities violations to the U.S. Securities and Exchange Commission.

The decision in Digital Realty v. Somers stated that simply complaining of wrongdoing within the employee's company does not trigger the protections of the law, thereby insulating securities firms from at least some whistleblower lawsuits.

Adhering to the language of the Dodd-Frank law, Justice Ruth Bader Ginsburg, writing for the court, said, "To sue under Dodd-Frank's anti-retaliation provision, a person must first 'provid[e]' … information relating to a violation of the securities laws to the commission." 

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