June 28, 2022

Volume XII, Number 179

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June 27, 2022

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SEC Issues Another Multi-Million Dollar Whistleblower Award

Less than one month after issuing a $22 million award, the SEC issued another multi-million dollar whistleblower award on September 20, 2016. The SEC’s most recent award exceeded $4 million.

The SEC issued its typical vague, redacted order granting the award claim. The order states that the SEC was issuing the award because the Claimant provided original information that led to successful enforcement pursuant to “Section 21F(b)(1) of the Securities Exchange Act of 1934, 15 U.S.C. § 78u-6(b)(1), and Rule 21F-3(a) thereunder, 17 C.F.R. § 240.21F-3(a).”  The greater than $4 million award constitutes between 10 to 30 percent of the monetary sanctions collected by, or to be collected by, the SEC arising from the original information provided by the whistleblower.

With this latest award, the SEC whistleblower award program has now awarded more than $111 million to 34 whistleblowers since 2011. In conjunction with this award, Jane Norberg, Acting Chief of the SEC’s Office of the Whistleblower, released a statement describing the aim of the SEC’s whistleblower program, stating: “Our program continues to incentivize whistleblowers to come forward with solid information that helps us bring violators to justice before more wrongdoing can occur.”

As the multi-million dollar awards continue to mount, including two very significant awards in the past month, the SEC is clearly communicating its message that whistleblowers stand to reap substantial awards for reporting alleged violations of securities laws.

© 2022 Proskauer Rose LLP. National Law Review, Volume VI, Number 266
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About this Author

Lloyd B Chinn, Financial, Whistleblower Attorney, Proskauer Law Firm
Partner

Lloyd B. Chinn is a Partner in the Labor & Employment Law Department and co-head of the Whistleblowing & Retaliation Group. He litigates employment disputes of all types before federal and state courts, arbitration tribunals (e.g., FINRA, JAMS and AAA), and before administrative agencies in New York and across the country. Lloyd's practice ranges from litigating compensation disputes to defending whistleblower, discrimination and sexual harassment claims. Although he represents employers in a wide range of industries, including law, insurance, health care, consulting, media,...

212-969-3341
Harris M Mufson, Class/Collective Action Attorney, Proskauer
Senior Counsel

Harris Mufson is a senior associate in the Labor & Employment Law Department and a member of the Employment Litigation & Arbitration and Whistleblowing & Retaliation Groups.

Adept at counseling clients at every turn of the litigation process, Harris represents employers in a variety of industries, including financial services, health care, entertainment, sports and legal, with respect to a wide range of labor and employment law matters. These include compensation disputes, employment discrimination and retaliation, whistleblowing,...

212-969-3794
Anthony DiBenedetto, Labor & Employment Attorney, Proskauer Law Firm
Associate

Anthony DiBenedetto is an Associate in the Labor & Employment Law Department resident in the firm’s Los Angeles office where he represents employers in all areas of labor and employment law, including unlawful discrimination, harassment, and retaliation claims, state and federal wage and hour class actions, trade secrets claims, and traditional labor law. Anthony also investigates and defends against whistleblower claims. In addition, Anthony counsels clients on compliance with state and federal employment laws and on developing, implementing and enforcing personnel...

310-284-4508
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