SEC Whistleblower Changes Not Enough, Attys Say

Law360, New York (May 25, 2011, 6:08 PM EDT) -- The final rule the U.S. Securities and Exchange Commission adopted Wednesday setting up its whistleblower bounty program made some changes meant to calm corporations' fears about the effect on compliance programs, but defense attorneys say the commission didn't go far enough.

In a 3-2 vote the SEC adopted whistleblower rules that set up potentially massive financial rewards for employees who report fraud at their companies to the commission's staff. The rule does not require employees to report violations to internal compliance departments, but it does put...
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