Co-authored by Caroline Schmidt, former associate in the firm's Litigation/Controversy practice group and now on a judicial clerkship
In this article, the authors identify four recent trends in the SEC's whistleblower program: a significant uptick in whistleblower bounties; awards for mid-investigation tips; the more lenient "objectively reasonable" standard for whistleblower protection from retaliation; and a continued focus on confidentiality agreements. The authors describe these trends and suggest some steps companies can take in light of them.
The US Securities and Exchange Commission has issued a rapid succession of high-dollar whistleblower awards in recent weeks that are certain to gain the attention of potential corporate whistleblowers. The SEC's Whistleblower Program financially rewards individuals who "voluntarily provide the SEC with unique and useful information that leads to a successful enforcement action."1 Since the Commission launched the program in 2011, the agency has awarded 32 whistleblowers more than $85 million dollars.2 Nearly a third of that amount has been awarded in the weeks since May 2016.
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Originally published by The Review of Securities & Commodities Regulation, October 19, 2016
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