Law360, New York (October 26, 2011, 12:35 PM EDT) -- Repeated inquiries from clients evidence considerable confusion over the narrow, but important, issue of whether allegations of a violation of the Foreign Corrupt Practices Act by a nonpublic company can lead to payments of bounties under the recently enacted whistleblower provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Generally, the answer is no.
This is because both the governing statute and U.S. Securities and Exchange Commission regulations provide that a bounty payment can only follow a successful SEC action “under the securities laws.”...
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