As Tips Flow In, Whistle-blower Attorneys Abound (Boehme quoted)

As Tips Flow In, Whistle-blower Attorneys Abound

Ben Adlin – July 25, 2012 – Daily Journal

tips

In the year since the U.S. Securities and Exchange Commission adopted a program allowing whistle-blowers to claim cash rewards for shining light on corporate wrongdoing, early evidence suggests the financial incentive has increased both the number and quality of tips flowing to the agency.

But the potential to collect big bounties hasn’t attracted whistle-blowers alone. The program also has spurred growth in a practice area for lawyers who represent tipsters in exchange for a cut of the action. That’s raised concern among some corporate defense lawyers, who say attorney involvement could lead to a barrage of ill-founded complaints and other headaches for public companies.

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