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Whistleblower Law Blog

Wall Street Journal Quotes TELG Principal on SEC Whistleblower Reward Program

In an article about the whistleblower provisions of the Dodd-Frank Act, the Wall Street Journal quotes Jason Zuckerman, a principal at The Employment Law Group®, regarding defense counsels’ complaint that SEC rules do not prevent a whistleblower from both collecting an award under the SEC whistleblower reward program and also seeking compensation through a securities class action.  Mr. Zuckerman responded by stating:

As a general proposition, it’s part of a parade of horribles big business has raised.  If corporations are not engaging in violations of securities laws, they don’t have anything to worry about.

Established in July under the Dodd-Frank Act, the SEC whistleblower reward program requires the SEC to reward whistleblowers up to 30% for information regarding fraud that leads to a recovery exceeding $1 million.  Whistleblowers are not required to disclose the violation to their employer through a Sarbanes-Oxley mandated internal compliance program, but newly proposed SEC rules may increase the whistleblower’s reward for disclosing to their employer first.  For more information about The Employment Law Group® and its SEC Whistleblower Practice.

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