U.S. Securities and Exchange Commission headquarters in Washington, D.C. (Photo: Diego M. Radzinschi/ALM)Whistleblower Awarded $4.5M for Reporting Internally and to SEC Within 120 Days
A whistleblower sent a tip to the SEC within 120 days of reporting internally, which sparked the company to self report. This is the "first time a claimant is being awarded under this provision of the whistleblower rules," according to the agency.
May 24, 2019 at 02:54 PM
3 minute read
The original version of this story was published on Corporate Counsel
The U.S. Securities and Exchange Commission has issued a $4.5 million whistleblower award, the first given under a provision incentivizing employees to submit allegations to the agency within 120 days of internal reporting.
Friday's award is the latest in a series of massive whistleblower awards, and not just from the SEC. During one week in March, whistleblowers in unrelated cases received $86 million in awards, including $1.87 million for the former general counsel of the Houston Housing Authority. A press release from the SEC Friday claims the agency has awarded “$381 million to 62 individuals since issuing its first award in 2012.”
“In this case, the whistleblower was credited with the results of the company's internal investigation, which were reported to the SEC by the company and led to the Commission's resulting enforcement action and the related action,” said Jane Norberg, chief of the SEC's Office of the Whistleblower, in a statement Friday.
The latest award goes to an unnamed company and employee who, according to the SEC, sent an anonymous tip to the employer alleging “significant wrongdoing.” The whistleblower also notified the SEC within 120 days, making the employee eligible for an award under 2011 rules adopted by the agency to promote internal reporting.
After receiving the tip, the company launched an internal investigation into the ”allegations of misconduct” and self-reported to the SEC, which began its own probe. Upon completing the internal investigation, the company shared its findings with the SEC.
“The whistleblower gets credit for the company's internal investigation because the allegations were reported to the Commission within 120 days of the report to the company,” Norberg said.
This is the ”first time a claimant is being awarded under this provision of the whistleblower rules,” according to the SEC. The agency said whistleblowers may be eligible for an award if they “voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action.”
Read More:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
From 'Confusing Labyrinth' to Speeding 'Roller Coaster': Uncertainty Reigns in Title IX as Litigators Await Second Trump Admin
6 minute read
New Class Action Points to Fears Over Privacy, Abortions and Fertility
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
