SEC Whistleblower Blog

SEC Supports Protections for Dodd-Frank Whistleblowers Who Report Internally

April 15, 2016
The U.S. Securities and Exchange Commission (SEC) continues to demonstrate its commitment to providing broad protections to whistleblowers who oppose securities laws violations. Most recently, the SEC moved to file an amicus brief in Danon v. The Vanguard Group, Inc., a Dodd-Frank retaliation claim currently pending before the...

Navistar Settles with SEC: Where Were the Whistleblowers?

April 12, 2016
Navistar International Corp., a maker of international trucks, has reached a settlement with the Securities and Exchange Commission over allegations that the company misled investors about its development of engine technology that could meet U.S. emissions standards. Struggling to Receive Certification On March 31, Illinois-...

SEC Whistleblower Office Issues $275K Award

April 8, 2016
The U.S. Securities and Exchange Commission (SEC) issued an Order on Tuesday, April 5, 2016, stating that it will pay a whistleblower over $275,000 for information the whistleblower provided to the SEC that led to a successful enforcement action.  Due to the SEC’s commitment to maintaining the anonymity of whistleblowers, the...

What does “Successful Enforcement” Mean: Understanding the SEC’s Terminology

March 11, 2016
The SEC’s commitment to curbing abuses of the financial system is exemplified by its Whistleblower Reward Program: when a whistleblower provides information that leads to a successful investigation and results in sanctions over $1,000,000, she is entitled to a percentage of that award.  Though this is an attractive incentive on...

SEC Issues $2 Million Award to Three Whistleblowers

March 8, 2016
The U.S. Securities and Exchange Commission (SEC) announced on March 8, 2016, that it would pay almost $2 million to three whistleblowers for information they provided that led to a successful enforcement action.  The awards were issued as part of the SEC Whistleblower Program, which has now paid more than $57 million to 26...

How the SEC’s Whistleblower Rules Encourage Internal Reporting

March 2, 2016
Internal whistleblowing remains a fraught topic within the U.S. Securities and Exchange Commission (SEC) and the courts charged with interpreting the 2010 Dodd-Frank Act. On the one hand, in an effort to assuage industry concerns that the whistleblower reward program would limit the ability for companies to independently cure...

In Yang, New York Court Dismisses Whistleblower Case Over Inability to Prove Causation

February 23, 2016
In September 2015, the 2nd Circuit Court of Appeals decided Berman v. Neo@Ogilvy LLC, holding that the Dodd-Frank Act protects whistleblowers who report securities violations to their employers. At the time Berman was decided, only the 5th Circuit had ruled on the question of whether a whistleblower who reported concerns to...

SEC Says You Don't Have to Be an Insider to Be a Whistleblower

February 9, 2016
In an apparent first for the Securities and Exchange Commission (“SEC” or “Commission”) whistleblower program, on Jan. 15, the SEC issued an award to an individual who was neither an employee nor a contractor of the company against whom the Commission leveled sanctions. The SEC stated in a press release that the $700,000 award...

Virginia Federal Court Enters Dodd-Frank Internal Whistleblower Fray

January 19, 2016
At Katz, Marshall & Banks, we frequently get phone calls from people who have experienced some variation on the following situation. An employee is working for a large company and has uncovered what she believes to be evidence of financial misconduct or fraud. She then reports her findings to a supervisor or someone in...

Dodd-Frank Whistleblower Protections: What's in Store for 2016?

January 14, 2016
Federal courts in 2015 were frequently at odds regarding the correct interpretation of the Dodd-Frank Act’s whistleblower protection provision. The dispute arises from an apparent conflict in the statutory language. On the one hand, the Dodd-Frank Act provides protection from retaliation for “whistleblowers,” a term defined in...

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