D.C. Circuit vacates SEC whistleblower award denial and orders reconsideration
Updated
Updated · Bloomberg Law · May 4
D.C. Circuit vacates SEC whistleblower award denial and orders reconsideration
14 articles · Updated · Bloomberg Law · May 4
The federal appeals court said the SEC failed to justify denying the applicant an exemption request under the Securities Exchange Act of 1934.
Judges found the commission abused its discretion by offering only a perfunctory explanation and not addressing the whistleblower's substantial cooperation or comparable past exemptions.
The ruling sends the case back to the SEC for a fresh review, requiring a fuller explanation rather than restoring the award outright.
With staff cuts and stricter court oversight, can the SEC's whistleblower program still effectively police financial fraud?
Is this SEC ruling the start of intense judicial oversight for all federal agencies after a landmark decision?
After a court protected a media-first whistleblower, should others now leak to the press before contacting the SEC?