What You Need to Know
Key takeaway #1
The SEC awarded a record-breaking whistleblower award of $279 million related to successful actions brought by the SEC and one other agency.
Key takeaway #2
This is a reminder that whistleblowers are financially incentivized to further government investigations, not just to initiate them. Companies that self-report misconduct to the government (or are already involved in government-initiated investigations) should consider the possibility of whistleblower involvement as the investigation progresses.
Key takeaway #3
The size of the award is certain to attract potential whistleblowers; it should also serve as a reminder that SEC-regulated companies must offer robust, retaliation-free, avenues for internal reporting.
On May 5, 2023, the Securities and Exchange Commission (“SEC” or “Commission”) announced a record-setting whistleblower award of nearly $279 million. This award more than doubles the SEC’s previous $114 million record-setter, issued in October 2020.
The SEC award order was heavily redacted, obscuring (as usual) any details about the underlying enforcement actions. What is known is that the assistance the whistleblower provided contributed to the SEC’s enforcement action and two actions pursued by another agency. Notably, the whistleblower merited this outsized award even though he or she did not prompt the opening of the Commission’s investigation, but provided information related to “certain of the conduct that the...
“Hey #Southafrica, Musk didn't have the decency to shake your president's hand. Musk helped get Malema sentenced. Don't believe for a second he won't target Ramaphosa,” reads the X post published ...