Partner Jeffrey Alberts, head of Pryor Cashman's White Collar Defense and Investigations practice, was quoted in the Law360 article entitled “Lawyers Weigh in on SEC’s Record Whistleblower Award.”

The U.S. Securities and Exchange Commission announced on September 22 that it planned to award more than $30 million to a corporate whistleblower, which is double the previous record payout.

"This award continues the trend of the government paying top dollar for employees to report their employers’ wrongdoing. Just last week, Attorney General Holder asked Congress to increase the limit on whistleblower rewards under the Financial Institutions Reform, Recovery and Enforcement Act, arguing that $1.6 million was not enough to motivate employees to report wrongdoing. These awards create incentives for employees to report wrongdoing despite concerns about the impact on their careers. They also create incentives for employees to exaggerate allegations of wrongdoing. As whistleblower awards balloon, one has to question whether the government is striking the right balance," said Alberts.

To read the article in its entirety, please click here.