Corporate Law News

Whistleblower Advocates Decry SEC Plan to Rein In Big Bounties

Sept. 18, 2018, 7:13 PM

An SEC proposal that would give commissioners more leeway to limit large whistleblower awards could discourage corporate insiders from reporting wrongdoing to the commission, advocates for the tipsters have told the agency.

The Securities and Exchange Commission would have greater liberty to restrict payouts to whistleblowers whose tips lead to cases that draw at least $100 million in sanctions under the plan. These whistleblowers would earn an amount of money that’s “reasonably necessary” for their assistance and is possibly less than what they would get today, as long as any adjustments to their award would not cause the sum...

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