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Related Action

Related Action is a term used in various whistleblower protection laws, such as the Dodd-Frank Act and the False Claims Act. It refers to a successful legal action, brought by a government agency or another authorized entity, that is based on the same original information provided by a whistleblower.

Government agencies that can bring related actions in whistleblower cases vary depending on the specific law and the nature of the wrongdoing. However, some common agencies include:

  • Department of Justice (DOJ): The DOJ is a major player in enforcing federal laws, including those related to fraud, waste, and abuse. They can bring related actions based on information provided by whistleblowers to government agencies with robust whistleblower programs.
  • Securities and Exchange Commission (SEC): The SEC oversees the U.S. securities markets and can bring related actions based on information provided by whistleblowers about securities fraud, insider trading, and other financial crimes.
  • Commodity Futures Trading Commission (CFTC): The CFTC regulates futures and options markets. They can bring related actions based on information provided by whistleblowers about fraud, manipulation, and other misconduct in these markets.
  • Internal Revenue Service (IRS): The IRS can bring related actions based on information provided by whistleblowers about tax fraud and evasion.

Impact of Related Actions on Whistleblowers:

  • Increased Award Potential: In some cases, whistleblowers can receive awards for related actions in addition to the original action they reported. This can significantly increase the potential reward for whistleblowers.
  • Expanded Scope of Protection: Related actions can broaden the scope of whistleblower protection and encourage individuals to report wrongdoing, even if it’s not directly related to the original complaint.
  • Strengthening Enforcement: By incentivizing whistleblowers to report information that can lead to multiple successful actions, related action provisions can help to strengthen enforcement efforts and deter future wrongdoing.

It’s important to note that the specific criteria for determining whether an action is a “related action” can vary depending on the applicable law. However, the general concept is to recognize the value of information provided by whistleblowers and to reward them accordingly.

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