Skip to content
DWT logo
People Services Insights
About Offices Careers
Search
People
Services
Insights
About
Offices
Careers
Search
Publications
Litigation

SEC Whistleblower Tips and Claims Surge Again in 2015

By   John Goldmark
January 2016
Share
Print this page

The SEC issued the 2015 Annual Report on its Whistleblower Program, announcing that whistleblower tips to the Commission grew significantly again this last year. According to the report, the SEC received 3,923 tips during the 2015 fiscal year, which is more than an 8 percent increase over the prior year. The SEC also experienced a surge in the number of whistleblower claims seeking payout after successful enforcement actions, so-called “bounty claims.”

Under the Dodd-Frank Act of 2010, the SEC is required to pay whistleblowers who provide information to the SEC that results in a successful enforcement action of more than $1 million in sanctions. The SEC has discretion to pay between 10 and 30 percent of the sanctions it collects, depending on the facts of the case. Factors that increase the size of the award include the significance of the information provided and the level of whistleblower assistance, while factors decreasing the award include the whistleblower’s involvement in the underlying conduct or delay in providing the tip. The SEC attributes the continued rise in whistleblower awards to increased public awareness of the whistleblower program and the significant funds it has paid out under the program, which now total more than $52 million.

One notable trend from the 2015 SEC report is that 80 percent of the whistleblower award recipients first raised their concerns internally before going to the SEC. This emphasizes that it is important for companies to have appropriate procedures for handling whistleblower tips (meritorious or not) when they arise, including by engaging counsel as early as possible to investigate and advise on the proper path forward.

Related Articles

2025
Feature
Financial Services
New Administration Outlook: Helping You Navigate Post-Election Uncertainty in 2025 and Beyond Read More External Link
05.22.25
Insights
White Collar, Investigations & Government Controversies
DOJ Criminal Division Reveals New White-Collar Crime Enforcement Priorities and Corporate Enforcement Policies Read More
04.02.25
Insights
Litigation
Delaware Enacts Sweeping Changes to the Delaware General Corporation Law Read More
DWT logo
©1996-2025 Davis Wright Tremaine LLP. ALL RIGHTS RESERVED. Attorney Advertising. Not intended as legal advice. Prior results do not guarantee a similar outcome.
Media Kit Affiliations Legal notices
Privacy policy Employees DWT Collaborate EEO
SUBSCRIBE
©1996-2025 Davis Wright Tremaine LLP. ALL RIGHTS RESERVED. Attorney Advertising. Not intended as legal advice. Prior results do not guarantee a similar outcome.