New Bill Would Create Shorter Wait Time for SEC Whistleblower Awards
- posted: Jul. 21, 2022
- Whistleblower Litigation, New Legislation
The Whistleblower Program of the Securities and Exchange Commission (SEC) has been a significant success since its implementation in the Dodd-Frank Wall Street Reform Act, but there have been some weak points. Chief among those is that it can take a significant amount of time before the SEC concludes its investigation and when the whistleblower finally receives their award: an average of four years..
A proposed, bipartisan piece of legislation, the SEC Whistleblower Reform Act of 2022, would shorten the wait time for those whistleblowers. Under the proposed bill, the SEC would have to issue an initial ruling on a claim within a year of the deadline to file a claim, greatly speeding up the process.
The bill is being co-sponsored by Senators Chuck Grassley (R-Iowa) and Elizabeth Warren (D-Massachusetts).
In addition, the bill would enhance the existing anti-retaliation protections, extending them to whistleblowers who report uncovered violations internally to their supervisors.
Under the SEC’s whistleblower program, qualifying whistleblowers can earn anywhere from 10 to 30 percent of the total value of the enforcement action when such actions exceed $1 million. Whistleblowers’ information should be unique, relevant and timely, helping investigators uncover securities violations or further their existing investigations.
If you are preparing to file a claim with the SEC’s whistleblower program, contact an experienced whistleblower lawyer at Kardell Law Group for assistance.
