A Bloomberg BNA article titled SEC Whistle-Blower Awards: No Guarantees quotes SEC whistleblower lawyer Dallas Hammer’s insights about factors that cause an SEC whistleblower reward claim to succeed or fail. Under the Dodd-Frank whistleblower program, the SEC granted awards to 37 whistleblowers.
In the article, Hammer observes that some applicants’ claims for awards fail because whistleblowers mistakenly assumed that they disclosed new information to the SEC when in fact the SEC was already aware of and investigating the information that they disclosed. Hammer notes that these situations arise because the SEC’s whistleblower program is largely a “one-way street” and that the SEC does not directly notify a whistleblower whose tip has led to a successful enforcement action. Instead, it publishes Notices of Covered Actions, and whistleblowers must spot actions that may be based on their disclosures. Therefore, whistleblowers could be assuming that an enforcement action was based on their tip when that wasn’t the case.
Hammer also observed that some whistleblowers failed to qualify for an award because they missed the deadline for applying an award and that being represented by an experienced whistleblower attorney can help whistleblowers avoid such a costly mistake.
To learn more about the SEC Whistleblower Program, download Zuckerman Law’s eBook: SEC Whistleblower Program: Tips from SEC Whistleblower Attorneys to Maximize an SEC Whistleblower Award:
In addition, more SEC whistleblower resources can be found here, and see these articles and this video: