Bloomberg Law
July 26, 2022, 9:53 PM

Carson Block Sued Over $14 Million SEC Whistle-Blower Award (1)

Katia Porzecanski
Katia Porzecanski
Bloomberg News

Short seller Carson Block was sued for allegedly failing to share a $14 million whistle-blower award he received from the US Securities and Exchange Commission for exposing an ongoing fraud.

Kevin Barnes said in a lawsuit filed Tuesday in New York state court that he co-authored the report that netted Block and his firm Muddy Waters LLC the March 2022 award. Barnes accused Block of breach of partnership and is seeking half of the amount.

“Defendants have refused to compensate Barnes from the award or provide a reconciliation of such funds,” the lawsuit said. “Moreover, defendants have wrongfully asserted ...

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