Fifth Circuit Ruling Underscores a Shortcoming of the SEC Whistleblower Program (BlueSky)

Published On: September 24th, 2024

An article written by Kohn, Kohn & Colapinto’s Andrew Feller and Geoff Schweller.

Whistleblowers who exposed what has been called “one of the biggest frauds in Texas history” are not eligible to receive Securities and Exchange Commission (SEC) whistleblower awards based on the collections recovered in a bankruptcy proceeding, according to a recent ruling by the United States Court of Appeals for the Fifth Circuit.

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