The Labaton Sucharow LLP is widely recognized as the first law firm to establish a practice specifically aimed at representing SEC whistleblowers in the United States. As so, the firm has created a long-standing reputation for its exceptional legal services. Early this year, the Labaton Sucharow LLP made headlines after announcing a Securities and Exchange Commission’s award of over $17 million to one of its clients. The whistleblower awarded with the huge amount was represented by the Labaton lawyers for exposing a considerable amount of wrongdoings in the financial services sector.
The multi-million award serves as the Commission’s second largest award since the inception of the SEC Whistleblower Program. The program gives eligible whistleblowers an opportunity to receive between 10 and 30% of the aggregate monetary sanctions received in a successful legal enforcement action.
In the case represented by Labaton and Sucharow law firm, the whistleblower opted to remain anonymous to prevent blacklisting or retaliation. On the other hand, SEC ensures that it conceals the specific areas where a whistleblower assists in taking legal action against a given offender. This is done to avoid exposing a whistleblower’s identity indirectly.
The Whistleblower Program
The Whistleblower Program is one of the most important reforms initiated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted by Congress in 2010. The program was established to provide financial incentives and employment protection to eligible whistleblowers. As so, the incentives and protection aim at encouraging individuals to report to the SEC about any possible violations of the federal securities regulations and rules.
SEC is required by the program to pay all eligible whistleblowers an amount between 10-30% of the entire monetary sanctions reaped from a successful SEC action. However, the sanctions must exceed $1 million. In some cases, eligible whistleblowers whose cases meet the $1 million threshold also qualify to receive additional awards. The additional awards come from monetary actions obtained from retaliated actions initiated boy other law enforcement and regulatory organizations. Further, the program allows whistleblowers to make their report anonymously on condition that an attorney represents them.
SEC Whistleblower Lawyers
They also go a step further to boost the chances of securing a larger whistleblower reward. Additionally, potential whistleblowers can safeguard their anonymity by consulting a SEC whistleblower lawyer. This helps to protect individuals against retaliation from a potential SEC offender.