Kohn, Kohn & Colapinto Discusses Changes to SEC Whistleblower Rules

The September 23 decision yielded a number of positive outcomes. Many problematic provisions were abandoned or significantly modified. However, the few disappointing outcomes discussed above make clear that work still needs to be done to ensure that whistleblowers are fully protected and the intent of Congress is achieved. Additionally, by adopting rules contrary to the statutory intent and plain language of the Dodd-Frank Act, the commission has opened itself to litigation based on its change to the related action rule and the guidance provided concerning analysts.