Whistleblower Watch

Whistleblower Watch

Reports and Analysis of Developments in Whistleblower Law

Tag Archives: Whistleblower Awards

Second-Largest Whistleblower Award Issued by SEC

Posted in Dodd-Frank Act (Dodd-Frank), Securities & Exchange Commission (SEC)
Last week, the SEC awarded more than $17 million to a single former corporate executive who provided a “detailed tip” regarding securities law violations by a financial services company.  Four other individuals made claims in the case, which the SEC denied because their information did not lead to successful enforcement of the securities law violations.   … Continue Reading

2015 SEC Whistleblower Report Highlights Successes and Trends

Posted in Dodd-Frank Act (Dodd-Frank), Securities & Exchange Commission (SEC)
In November, the Securities and Exchange Commission issued its 2015 annual report to Congress on the agency’s Dodd-Frank Whistleblower Program. The report notes an increased number of tips made by whistleblowers to the SEC — up 8% from last year and 30% since 2012.  The statistics in the report also provide an interesting profile of… Continue Reading

Relator-Friendly Ruling Highlights Dangers of Imprecise Settlement Agreements

Posted in Department of Justice (DOJ), False Claims Act (FCA)
The Middle District of Tennessee ruled recently that Community Health Systems, Inc. (CHS) cannot rely upon the “first to file” and “public disclosure” bars to avoid paying attorneys’ fees and costs where a settlement agreement did not specify these grounds for precluding such awards to the relators. This outcome should warn defense counsel to clearly… Continue Reading

SEC Awards More Than $3 Million to Whistleblower

Posted in Dodd-Frank Act (Dodd-Frank), Securities & Exchange Commission (SEC)
Last Friday, the SEC awarded over $3 million to a whistleblower as part of the Dodd-Frank Act whistleblower bounty program. This is the third largest award issued to date, behind an award of $30 million last year and an award of $14 million in 2013. Consistent with its practice of protecting the confidentiality of whistleblowers, the… Continue Reading

SEC Announces Whistleblower Award in First Retaliation Enforcement Action

Posted in Dodd-Frank Act (Dodd-Frank), Securities & Exchange Commission (SEC), Whistleblower Retaliation
The SEC recently announced its first award under the Dodd-Frank anti-retaliation regulations.  The whistleblower alleged that he was demoted and stripped of his authority after his employer, Paradigm Capital Management, Inc., learned that he complained to the SEC that Paradigm engaged in improper trading practices.  The whistleblower will receive $600,000.  This amount equals 30 percent of… Continue Reading

SEC Issues Its Second Dodd-Frank Whistleblower Award to a Compliance Employee

Posted in Dodd-Frank Act (Dodd-Frank), Securities & Exchange Commission (SEC)
Earlier this week, the SEC announced an award of $1.4 to 1.6 million under the Dodd-Frank whistleblower bounty provisions to an individual responsible for compliance in his or her company. We wrote about the first award to a compliance employee last September. This second award is approximately five times larger than the first award, which… Continue Reading

“Watch List” Update: 2nd Circuit Affirms SEC’s Denial of Award to Pre-Dodd-Frank Tipster

Posted in Dodd-Frank Act (Dodd-Frank), Securities & Exchange Commission (SEC)
Following up on a case we first reported on in October 2014, the Second Circuit recently affirmed the SEC’s refusal to grant an award to a tipster who provided information to the SEC prior to when the Dodd-Frank Act took effect.  In Stryker v. Securities and Exchange Commission, the plaintiff was seeking an award under… Continue Reading

Former Company Officer Awarded up to $575,000 by SEC

Posted in Dodd-Frank Act (Dodd-Frank), Internal Investigations, Securities & Exchange Commission (SEC)
The Securities and Exchange Commission announced yesterday its first whistleblower award to a former company officer who learned about the fraud from another employee. The award, which will be between $475,000 and $575,000, follows on the heels of the SEC’s award to a whistleblower who performed audit and compliance functions. Yesterday’s announcement is noteworthy because… Continue Reading

4th Circuit Grants Emotional Distress Damages in SOX Case; Applies Four-Year Statute of Limitations to SOX Claims

Posted in Department of Labor (DOL), Sarbanes-Oxley Act (SOX), Whistleblower Retaliation
The Fourth Circuit just joined two of its sister Circuits and the Administrative Review Board (ARB) of the U.S. Department of Labor in granting emotional distress damages to a SOX whistleblower. In the same case, the Fourth Circuit also applied a four year statute of limitations to bring SOX claims in federal court after exhausting… Continue Reading

NYT: The Positives and Negatives of Increased Whistleblowing

Posted in Department of Justice (DOJ), Dodd-Frank Act (Dodd-Frank), False Claims Act (FCA), Securities & Exchange Commission (SEC)
The New York Times just published an article by Professor Steven Davidoff Solomon of the University of California at Berkeley School of Law that explores both the positive aspects of increased whistleblowing in recent years, as well as the perverse incentives that increased rewards for whistleblowers are creating in some people. The article is available… Continue Reading

NYT: Rise of The Whistleblower

Posted in Department of Justice (DOJ), Dodd-Frank Act (Dodd-Frank), False Claims Act (FCA), Internal Revenue Service (IRS), Securities & Exchange Commission (SEC), Whistleblower Retaliation
The New York Times recently published an article by Professor Peter Henning of Wayne State University Law School regarding the rise of the whistleblower in recent years due to increased statutory protection and redoubled enforcement efforts by various federal agencies. The article is available here.… Continue Reading

SEC Highlights Successes of Dodd-Frank Whistleblower Program to Congress

Posted in Dodd-Frank Act (Dodd-Frank), Securities & Exchange Commission (SEC)
Yesterday, the Securities and Exchange Commission (SEC) issued its annual report to Congress on the agency’s Dodd-Frank Whistleblower Program. The report details the increased success the program had in 2014, including that it paid awards to nine whistleblowers, as compared to the five awards total in the prior years since the program was established in… Continue Reading

“Watch List”: Pre-Dodd-Frank Tipster Seeks Bounty in 2nd Circuit

Posted in Dodd-Frank Act (Dodd-Frank), Securities & Exchange Commission (SEC)
The Second Circuit recently heard oral argument in a case in which a whistleblower who provided information to the SEC before the Dodd-Frank Act seeks payment of an award under the Act’s bounty provisions. In Stryker v. U.S. Securities and Exchange Commission, Larry Stryker is appealing the SEC’s denial of his claim for an award… Continue Reading

SEC Announces Record $30-35 Million Whistleblower Award

Posted in Dodd-Frank Act (Dodd-Frank), Securities & Exchange Commission (SEC)
The SEC announced last week that it is poised to pay out a record breaking $30-35 million award to a whistleblower. The previous record payment was $14 million, and most of the payouts under the Dodd-Frank Act’s bounty provisions have been well under $1 million. This latest award should serve as a wake-up call to… Continue Reading