Katz, Marshall & Banks partners Lisa Banks and Matthew Stiff co-authored an Expert Analysis Opinion piece for Law360, “Congress Must Fill the Gaps in SEC Whistleblower Program.”
The SEC struck a delicate balance when creating the whistleblower program to ensure that whistleblowers would be protected from retaliation, while also incentivizing internal reporting so that companies could address misconduct and self-report violations. The program granted whistleblower status to any employee who internally reports allegations, as long as he or she also provides the same information to the SEC within 120 days.
In February, 2018, the Supreme Court ruled in Somers v. Digital Realty that only whistleblowers who reported to the SEC were protected from retaliation under program rules, therefore jeopardizing whistleblowers who report internally.
Ms. Banks and Mr. Stiff cover how the whistleblower program has evolved, and how Congress can step in and fix the problems that the Supreme Court ruling caused.
Read the full article here.