FAQs Archive

SEC Whistleblower Program: How might information about securities law violations “lead to” a successful SEC enforcement action?

Information “leads to” a successful SEC action if it causes the SEC to: Open an investigation (even if the information ultimately does not have a strong … Continued

SEC Whistleblower Program: What is considered “original information” to qualify for an award?

Original information qualifying for an SEC Whistleblower Award “Original information” is information that is not already known to the SEC. Thus, if another whistleblower … Continued

Image of SEC Whistleblower Program: Can I submit a tip to the SEC if I agreed to a confidentiality provision in an employment or severance agreement?

SEC Whistleblower Program: Can I submit a tip to the SEC if I agreed to a confidentiality provision in an employment or severance agreement?

Yes. The SEC firmly rejects any employer’s attempt to impede an employee’s communication with the SEC about a possible securities-law violation by using … Continued

SEC Whistleblower Program: Do I have to report a securities law violation to my company before reporting the violation to the SEC?

In determining whether to report internally prior to reporting to the SEC, a whistleblower should consult with counsel to determine the optimal path forward … Continued

SEC Whistleblower Program: Can compliance personnel, auditors, officers or directors qualify for an SEC whistleblower award?

Compliance Personnel, Auditors, Officers, and Directors Can Obtain SEC Whistleblower Awards Compliance personnel, including internal auditors, external auditors, officers, and directors, may incorrectly assume that they are not … Continued

SEC Whistleblower Program: Can I submit a tip to the SEC if I was involved in the fraud or misconduct?

Yes, so long as you are not criminally charged. Indeed, the SEC has issued a few awards to whistleblowers that bore some degree … Continued

SEC Whistleblower Reward Program: Who is an “eligible” whistleblower for an award under the program?

Most individuals, regardless of citizenship, are “eligible” whistleblowers if they voluntarily provide the SEC with original information about a possible violation of the federal securities … Continued

What is the SEC Whistleblower Program?

SEC Whistleblower Program The SEC Whistleblower Program offers awards to eligible whistleblowers who provide original information that leads to successful SEC enforcement actions with total monetary sanctions exceeding $1 … Continued

Will an employer’s reliance on an untrue reason for an adverse employment action defeat a discrimination claim?

The employer’s belief in the preferred reason for the adverse employment action must have been both honest and reasonable. “[T]he factfinder is tasked with evaluating … Continued

Does a whistleblower’s disclosure of his misconduct deny the whistleblower protection under whistleblower retaliation laws?

No. The disclosure is still protected and the core issues will be whether the employer would have taken an adverse employment action against the employee … Continued

What is constructive discharge?

A constructive discharge occurs when the working conditions are so intolerable that a reasonable person in the employee’s position would feel forced to resign.

What is the impact of an offer of reinstatement?

If an employer makes an unconditional offer of full reinstatement and the former employee rejects the offer, the rejection of the offer can bar a claim … Continued

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