whistleblower

The SEC has begun to bring enforcement actions against companies whose employment and client agreements could appear to infringe on the right to report cases in violation of Section 21f-17(a) of the Exchange Act. On September 9, 2024, the Securities and Exchange Commission (SEC) announced that it settled charges against seven public companies for more than $3 million in combined civil penalties for including language in their employment, consulting and other agreements that potentially discourages whistleblowers from reporting issues to outside authorities.… Continue Reading

The Securities and Exchange Commission (SEC) has recently announced settlements with a number of companies whose separation agreements or internal policies the SEC viewed as impeding employees’ participation in the SEC’s whistleblower program, including privately-held companies not otherwise regulated by the SEC.

The Upshot

  • The SEC’s whistleblower program gives broad protections to individuals seeking to report potential violations of the securities laws, and has been aggressively enforced since its adoption in 2011.
… Continue Reading

On December 29, 2022, Congress passed the “Anti-Money Laundering Whistleblower Improvement Act” to motivate both would-be whistleblowers and the plaintiffs’ bar to pursue Anti-Money Laundering Act of 2020 (“AMLA”) and related claims more vigorously by providing certain financial incentives. 

First, the Act entitles whistleblowers to an award of between 10 and 30 percent of the value of “monetary sanctions” above $1 million collected as a result of an enforcement action (importantly, “monetary sanctions” do not include forfeiture). … Continue Reading

The latest episode of Ballard Spahr’s Business Better Podcast features a discussion of the new whistleblower provisions in the Anti-Money Laundering Act of 2020. We’ll discuss the types of businesses covered, who can be a whistleblower under the Act, the increased incentives now provided, new protections against retaliation, the impact of a whistleblower being involved in the conduct, and practical advice for affected institutions.… Continue Reading