Whistleblower Complaint Protocols

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3 Responses

  1. Joe Vicario says:

    Not sure I agree fully with the following statement: “As everyone knows, with certain exceptions, whistleblowers have to wait 120 days after internally filing a complaint before they can report the matter to the SEC.”

    My understanding is that WB is not required to report internally before going to SEC and, even if WB does report internally, the WB only has to report within 120 days to the SEC. Thus the WB does not have to wait 120 days, if my understanding is correct.

    • Michael Volkov says:

      Joe: Thanks for the comment. My sentence was a little inartful. The WB can go straight to the SEC. However, if the WB first reports internally, the WB has to report wihtin 120 days, and has an incentive to follow this process since the SEC said they will take this fact into account when determining how much to award. So, if the WB goes straight to the SEC, he presumably will get a smaller award; if hte WB reports inetrnally and then goes to the SEC within the 120 day period, then the WB is eligible for a greater award. Presumablyu, the longer he waits in the 120 day period, the better for the WB since he gets a look back which incldues any information inetrnally discovered by the company during that period.

    • Michael Volkov says:

      Joe: Thanks for the comment. My sentence was a little inartful. The WB can go straight to the SEC. However, if the WB first reports internally, the WB has to report wihtin 120 days, and has an incentive to follow this process since the SEC said they will take this fact into account when determining how much to award. So, if the WB goes straight to the SEC, he presumably will get a smaller award; if hte WB reports inetrnally and then goes to the SEC within the 120 day period, then the WB is eligible for a greater award. Presumablyu, the longer he waits in the 120 day period, the better for the WB since he gets a look back which incldues any information inetrnally discovered by the company during that period.