SEC's Whistleblower Program Grants Fourth Largest Award In Its History

On August 4, 2023, the Securities and Exchange Commission announced awards totaling more than $104 million to seven whistleblowers in connection with a successful SEC enforcement action. The SEC's Press Release can be found (here), and the Order can be found (here).

The Dodd Frank Act, passed into law on July 21, 2010, protects the confidentiality and identity of whistleblowers. But the worry that your employer may fire you if they catch wind of the fact you are tipping off the SEC may be enough to keep some individuals from coming forward with vital information about potential securities law violations. Awards like the one granted by the SEC on August 4 go a long way in encouraging whistleblowers to take that risk-while the allocations of the award remain confidential, if divided seven ways, each individual is walking away with nearly $15 million. Claimants that came forward earliest (leading to the opening of the investigation), provided ongoing assistance as the