Katz Banks Kumin partner Alexis Ronickher spoke on a DC Bar CLE webinar about new developments in the SEC Whistleblower Program, and how these changes will practically impact securities whistleblowers.
In September 2020, the Securities and Exchange Commission (SEC) voted to pass final rules amending its whistleblower program, which became effective on December 7, 2020. With regards to changes to whistleblower award payouts, the SEC adopted an expansive rule that allows for discretionary downward adjustments of any award amount, but also adopted a more favorable change that grants a presumption in favor of awarding the maximum statutory award to whistleblowers eligible for a maximum award of $5 million or less.
The SEC also decided to expand the meaning of “successful enforcement,” which will allow whistleblowers to collect awards in more instances, updated its definition of “whistleblower status,” and clarified who is protected by the program’s anti-retaliation statute.
Ms. Ronickher offered insights on how whistleblowers and whistleblower attorneys should adapt to these new rules, and how companies should respond to internal whistleblower tips.
Find more information, including how to view the webcast in the DC Bar’s on-demand library, here.