SEC Whistleblower Program Raises Privilege Worries

Law360, New York (July 19, 2011, 1:44 PM EDT) -- The U.S. Securities and Exchange Commission tightened up language meant to preserve attorney-client relationships when it finalized its whistleblower rules, but observers say exclusions built into the rule leaves the door open for less-scrupulous attorneys to attempt to collect whistleblower bounties.

In a 3-2 vote, the SEC adopted whistleblower rules in May, setting up potentially massive financial rewards for employees who report fraud at their companies to the commission's staff. The 305-page final rule, which largely hews to the original proposal the SEC put forward in...
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