Here are the top trends to watch from the Securities and Exchange Commission annual whistleblower report
The Securities and Exchange Commission (SEC) recently issued its 2015 Annual Report to Congress on the Dodd-Frank Whistleblower Program. The SEC’s latest whistleblower report highlights that the agency’s Office of the Whistleblower continues to strengthen what is termed a “successful program.”
Per our prior posts, the SEC’s Whistleblower Program, which was first launched in 2011, provides a monetary incentive to corporate insiders and others with relevant information concerning potential securities violations to report such information to the Commission. Those who provide high-quality, original information, resulting in SEC enforcement action with sanctions exceeding $1 million, are eligible for awards ranging from 10 percent to 30 percent of the money collected by the Agency.
Continued uptick in tips and awards: The SEC’s Whistleblower Program in fiscal year 2015 awarded $37 million to tipsters. The SEC received nearly 4,000 whistleblower tips, which is a 30 percent increase over the number of tips received in fiscal year 2012. According to the SEC, “the uptick in whistleblower award claims is attributable to the increased public awareness of the SEC’s whistleblower program and in response to the tens of millions of dollars that have been paid to whistleblowers under the program.”
Interpretation of anti-retaliation provisions: The SEC continues to take a very active role in Dodd-Frank anti-retaliation suits brought by whistleblowers, filing amicus curiae briefs in several suits that argue against a narrow interpretation of the anti-retaliation employment protections established by the Dodd-Frank Act. In August 2015, agency issued interpretive guidance clarifying that the Dodd-Frank anti-retaliation provisions apply to individuals who report information of possible securities law violations irrespective of whether they report such information internally or to the SEC. This fall, the Second Circuit Court of Appeals in Berman v. Neo@Ogilvy LLC deferred to the SEC’s interpretation.
Scrutiny of confidentiality provisions: The Office of the Whistleblower continues to focus on whether employers’ use of confidentiality, severance, and other kinds of agreements interferes with an employee’s ability to report potential wrongdoing to the SEC. For the first time, the agency brought charges under Rule 21F-17(a) against a company for including language in confidentiality agreements that was deemed to impede whistleblowers from reporting to the SEC. Rule 21F-17(a) provides that “[n]o person may take any action to impede an individual from communicating directly with the Commission staff about a possible securities law violation, including enforcing, or threatening to enforce, a confidentiality agreement…with respect to such communications.” This issue will continue to develop, and similar actions are expected in the future.
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
