Navigating the SEC’s new whistleblower bounty program

“Certainly, the prospect of a cash bounty could result in the SEC’s being inundated with tips, valid or not,” says Sarah Johnson at Navigating the new law will be tricky for public companies, she added. They should remind their employees how to report suspicions internally, so that potential problems can be dealt with before the SEC gets involved, Johnson wrote. However, public companies should also be careful to not discourage reporting to the feds at the same time because it could end up being fodder for lawyers in later litigation. || More from Compliance Week on the new bounty program

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