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Law Firms Examine the SEC's New Whistleblower Rules

On May 25, 2011, the Securities and Exchange Commission adopted rules to create a whistleblower program that rewards individuals who provide the agency with high-quality tips that lead to successful enforcement actions.  In short, the new rules provide that a whistleblower who voluntarily provides the SEC with original information that leads to the successful enforcement by the SEC,  a federal court ,or administrative action in which the SEC obtains monetary sanctions totaling more than $1 million is eligible to receive a "bounty" for that information.

This new whistleblower program has the potential for wideranging effects on public companies of all kinds and sizes.  To help us understand the program and its implications, a number of law firms have put drafted client memos and alerts providing their take on the rules.  Assembled below are links to a number of such memoranda as well as the SEC's Fact Sheet on the new rules.

Dechert LLP, SEC Adopts Final Whistleblower Rules

Ropes & Gray LLP, The SEC's New Whistleblower Compensation Rules

K&L Gates, What Companies Need to Know About the Dodd-Frank Whistleblower Rules

Fried Frank, The SEC Adopts Game-Changing Rules for Whistleblowers and their Employer

SEC Fact Sheet, SEC Adopts Rules to Establish Whistleblower Program