Allison Herren Lee is Of Counsel at Kohn, Kohn & Colapinto LLP. This post is based on her Kohn, Kohn, & Colapinto piece.
The SEC’s whistleblower program has been a resounding success – a point that has been echoed by SEC Chairs and Commissioners from both sides of the aisle. Indeed, whistleblowers have helped to take over $1.5 billion out of the pockets of fraudsters and put it back into the hands of their victims. The program has garnered over $6.3 billion in sanctions and, importantly, awarded over $1.5 billion to the courageous women and men who helped bring misconduct to light.
It is this very success that highlights the wisdom, and anti-corruption benefits, of continually working to improve and build upon the promise of this impressive record. Fortunately, a bipartisan group of Senators agree and have put forth the SEC Whistleblower Reform Act of 2023. Introduced by Senators Grassley (R-IA) and Warren (D-MA) on March 15, and cosponsored by Senators Collins (R-ME), Warnock (D-GA) and Cortez Masto (D-NV), this legislation is designed to make some important improvements to the SEC’s existing program.
Most notably, the legislation would address the U.S. Supreme Court’s 2018 ruling in Digital Realty Trust, Inc. v. Somers which stripped workers of protection from retaliation when they have reported corporate misconduct internally but not externally to the SEC. In addition, it would reinforce important safeguards to prevent companies from using policies or practices...
Mark Sullivan never thought the last time he would see the woman he fell for at a charity dinner, she would be sitting in the glass-walled dock of a magistrates' court. His former partner, Deborah...