Labaton Sucharow LLP, a law firm that represents SEC whistleblowers was recently awarded an amount estimated to be more than $17 million on behalf of their client, an anonymous whistleblower. Labaton Sucharow was the first law firm in United States to implement the SEC’s whistleblower program that involves the anonymous reporting violations of trade laws by traders of stocks and securities. Learn more: http://blogs.wsj.com/riskandcompliance/2016/06/09/sec-issues-17-million-whistleblower-award/?mod=WSJBlog
The compensation is the second largest amount since SEC started the program six years ago. The program also outlined the formula to be used by SEC to compensate whistleblowers. The program requires SEC to give 10-30% of the amount recovered after a successful enforcement action to the person who exposed trade irregularities.
Labaton Sucharow’s client, who was awarded the price, had actively participated in the enforcement action. However, the case was presided by Labaton Sucharow’s SEC whistleblower lawyer to ensure that their client remained anonymous.
Jordan A. Thomas, the chairperson of SEC whistleblower program in Labaton Sucharow LLC, termed their client as a courageous person since he had done what other people had feared to do. He hoped that more whistleblowers, who had access to such valuable information, could come out to reveal more violations of the regulations governing the trading of stocks and securities.
Jordan A Thomas became the first officer from a public company to receive a SEC award. Additionally, he was honored for being the first SEC whistleblower attorney to fight for the rights of a whistleblower who had faced vengeful acts from his employer after disclosing the securities trade offense.
The SEC whistleblower program allows for anonymous reporting of a case. In an anonymous reporting, a whistleblower attorney will represent a whistleblower while his or her details are kept confidential.
After a successful enforcement, a whistleblower would receive a percentage of the money recovered. Whistleblowers could receive additional awards if the sum amount recovered is more than $1 million and if it leads to the prosecution of other similar securities violations by other law enforcement organizations. The Congress had set aside an amount that could be used to compensate whistleblowers.
Labaton Sucharow Firm has practiced in the legal industry for more than five decades. It has represented its clients from the business industry and consumers to achieve best outcomes in a financial lawsuit. It was the first law firm that started the practice of protecting whistleblowers according to the Dodd-Frank Wall Street Reform and Consumer Protection Act.