SEC Announces Record-Breaking Year for Whistleblower Program

26 November 2018
View Debevoise Update
Key takeaways:
  • The SEC announced a “record-breaking year” for its whistleblower program, after receiving more than 5,200 whistleblower tips and distributing more than $168 million in awards to 13 individuals.
  • The increase in tips may reflect the U.S. Supreme Court’s February 2018 decision in Digital Realty v. Somers, which held that employees are only protected by Dodd-Frank anti-retaliation provisions if they report suspected wrongdoing directly to the SEC—only reporting internally does not qualify.
  • The Commission has proposed amendments, and is currently reviewing public comments, to the Whistleblower rules that would respond to Digital Realty and make other changes that would affect the whistleblower claims review process and award determinations.