Securities and Exchange Commission Whistleblower Program

Hagens Berman represents whistleblowers under the new Securities and Exchange Commission (SEC) whistleblower program.

On May 25, 2011, the SEC officially adopted new rules that provide incentives as well as protection for whistleblowers who report violations of securities laws.  

Under the new provision, a whistleblower who provides original information of SEC violations which leads to the recovery of government funds exceeding $1 million is entitled to between 10 and 30 percent of the recovery.

The SEC has limited resources, however, and can only pursue claims that are both clearly-reasoned and actionable. In order to properly present a claim to the SEC, a whistleblower needs to know that the firm they retain understands securities law. Hagens Berman has extensive experience representing investors in securities class actions. For instance, the firm was lead counsel in a recently settled case against Charles Schwab that alleged the investment giant misled investors about the risks of its YieldPlus funds, which contained risky mortgage-backed securities. The firm reached a $235 million settlement for investors.

Hagens Berman has also taken on large corporations on behalf of investors, alleging false or misleading public statements and other securities violations. For instance, the firm earned a $92.5 million settlement for investors after Boeing allegedly concealed production problems with the 777 airliner until a pending merger with McDonnell Douglas had been completed.

Hagens Berman has worked alongside government officials and regulators, establishing the credibility necessary to bring a case to the SEC. When Hagens Berman brings a claim, regulators pay attention.

If you have any information about possible securities fraud, we encourage you to contact us at (206) 623-7292.