Under the SEC Whistleblower Award Program, if one or more whistleblowers provide information to the SEC that it uses to bring a successful action in which it collects more than $1 million from the wrongdoers, the SEC is required to give the whistleblower(s) a monetary award of between 10% – 30% of the amount of money it collects, assuming all other requirements are met.
A recent joint report by the NYU Pollack Center for Law & Business and Cornerstone Research (the “Report”) has found that from fiscal year 2010 through the first half of fiscal year 2016, the average monetary settlement imposed by the SEC on public companies and their related subsidiaries was $24 million. Over that same time period, the median settlement was $5 million. (Source: Report at page 6.)
Both the $24 million average and the $5 million median figures cited in the Report for the last 6½ years are well over the $1 million threshold required for the issuance of an SEC whistleblower award.
This is especially encouraging news for potential SEC whistleblowers, since the same Report also found that the total number of actions that the SEC brought against public companies and their related subsidiaries has been steadily rising since 2013. As I covered in my last post, in just the first half of this year, the SEC is already on pace to exceed its totals from each of the last three years, and to more than double the number of enforcement actions that it brought against public companies and their related subsidiaries during all of fiscal year 2013.
* * *
As an SEC whistleblower law firm, The Pickholz Law Offices has represented employees, officers, and others in SEC whistleblower cases involving financial institutions and public companies listed in the Fortune Top 10, Top 20, Top 50, Top 100, Top 500, and the Forbes Global 2000. We were the first law firm ever to win an SEC whistleblower reward for a client on appeal to the full Commission in Washington, an achievement that Inside Counsel magazine named one of the five milestones of the SEC whistleblower program.
For more information about The Pickholz Law Offices, you can click on any of the links in the margins of this page.
If you would like to speak with an SEC whistleblower attorney, please feel free to call Jason R. Pickholz at 347-746-1222.
The above information is not and should not be construed as providing legal advice. It is not and should never be considered as a substitute for consulting with your own attorney. The use of this web site or this page does not constitute or create any attorney-client, fiduciary, or confidential relationship between The Pickholz Law Offices LLC and anyone using this web site, or anyone else. The information contained on this website is for informational purposes only. The content of this web site may not reflect current developments. Prior results do not guarantee a similar outcome. Results of prior cases or matters contained on this web site are not indicative of future results or outcomes, and should not be taken as a prediction, promise, or guarantee of any future result or outcome. No one who accesses this web site should act or refrain from acting based on anything contained on this web site. For additional terms and conditions governing the use of this web site, please click on the “disclaimer” link at the bottom of this page or click here.