21 March 2019 - Article
Whistleblowers who are culpable and unreasonably delay reporting wrongdoing may see their whistleblower awards reduced, following a recent SEC order. On February 28, 2017, the SEC issued a reduced award of 20 percent of the monetary sanctions collected in the covered action to a whistleblower because of the whistleblower’s culpability in connection with securities law violations at issue as well as the whistleblower’s unreasonable delay in reporting the wrongdoing to the SEC.
The SEC’s order determining the award provided no details regarding the violations or the whistleblower’s culpability.
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