2022 has kicked off with several new whistleblower awards, as the SEC announced earlier this week that it had awarded more than $4 million to whistleblowers who provided information and assistance in two government actions—one for misconduct occurring overseas and a second where the whistleblower’s assistance directly led to the success of the covered action.
Since the inception of the program in 2012, the SEC has awarded approximately $1.2 billion to 241 individuals for providing information that led to successful enforcement actions by the SEC and other agencies. Despite challenges due to COVID-19, the last fiscal year set new records (both in terms of dollars and individual awards), had the largest number of whistleblower tips, and resulted in more awards than in all other prior years combined.
Many D&O policies respond to a variety of government activity, ranging from informal interviews and requests for information to subpoenas and enforcement actions. However, policyholders may be surprised to learn (usually upon receipt of a denial letter) that the involvement of a whistleblower in the government’s investigation has the potential to negate coverage under an “Insured vs. Insured” exclusion—a common provision barring coverage for claims by or on behalf of one insured against another insured–if the whistleblower assisting, participating in, or soliciting the claim is considered an “insured” person under the D&O policy. Because the persons most likely to take...
False sexual or rape allegations can have devastating consequences for the accused, including reputational damage, loss of employment and emotional trauma. In Nigeria, current legislation focuses ...