A recent Wall Street Journal article reported on one of my whistleblower clients who is awaiting a multi-million dollar award from the SEC. As noted by the WSJ, the reward payout under the Dodd-Frank reward program for this particular matter ranges from $3 million to $14 million. The crux of the story relates to how whistleblowers are having to wait years for their claims to be processed, and my client’s story is detailed at the end of the WSJ article titled, SEC Whistleblower Payouts Slow Amid Deluge of Reward Seekers.
For those of you who are interested in reading but who do not have a WSJ subscription please click here for a full download of the article. Remarkably, according to the WSJ’s analysis, the process of obtaining a reward from the SEC takes longer than the underlying enforcement proceeding: “Wall Street’s top regulator now takes more than two years to hand rewards to tipsters who report wrongdoing, a process that lasts longer than the average time it takes to investigate and close an enforcement case.”
It is important that the SEC reduces the backlog as soon as possible because courageous whistleblowers have placed their faith in the Dodd-Frank program and deserve to have a timely reward determination. If there is anyone who is suffering as a result of this terrible backlog and want to discuss their potential legal remedies, please feel free to reach out.