SEC Whistleblower Representation Practice Chair Jordan Thomas was quoted in The Wall Street Journal regarding a first of its kind payout from the SEC Whistleblower Program. The SEC paid $4.5 million to a whistleblower who provided information about an alleged kickback scheme in Brazil. It was the first payout under a new provision that incentivizes reporting misconduct internally before reporting to the SEC. "This is an example of that incentive working for whistleblowers and for corporate America," Jordan said of the provision.
However, the U.S. Supreme Court issued an opinion last year which some believe will blunt the effect of the new provision. In Digital Realty Trust, Inc. v. Somers, the Court unanimously decided that whistleblower status and associated protections would only apply in cases where the whistleblower reported directly to the SEC.
Click here to read the full article.