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Recent Whistleblower Cases, Court Decisions Further Incentivize Whistleblowers to Come Forward

The federal government has done an excellent job of incentivizing whistleblowers to come forward with information about securities laws violations in recent years, thanks to the numerous protections it has added for people who report this information. Now, record awards from the U.S. Securities & Exchange Commission and recent Supreme Court rulings have made it even more worthwhile for whistleblowers to report their information.

SEC awards increasing

The SEC has awarded more than $262 million to whistleblowers since 2012 in its whistleblower program. Many of these awards have come within the last year and a half.

Perhaps most noteworthy was the record award issued on March 19 by the SEC, in which a pair of whistleblowers shared a $50 million pot and a third whistleblower received a total of $33 million. Both of these awards destroyed the previous high mark of $30 million, and continued what has been a trend lately of increasing awards in SEC whistleblower cases. Whistleblowers now have plenty of financial reasons why they would submit their information to the SEC’s Office of the Whistleblower.

Court decisions

Several court cases have recently been crucial in bringing more whistleblowers forward, but perhaps none more so than Digital Reality Trust, Inc. v. Somers. In this case, the Supreme Court held Dodd-Frank’s anti-retaliation provisions only protect employees from retaliation who first give information about securities laws violations to the SEC. This means employees who only make internal reports through their company’s reporting processes without also alerting the SEC will not be able to benefit from anti-retaliation protections.

This decision essentially guaranteed that anyone who had actionable information would now come to the SEC rather than hoping their company would handle the matter internally, allowing them to benefit from federal whistleblower protections.

For more information on the benefits and protections afforded to those who assist the SEC, work with a dedicated whistleblower attorney at Kardell Law Group in Dallas.

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Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

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