The new US whistleblower rules could create an
enormous amount of collateral litigation, according
to some counsel.
Following the rules release on May 25, the impact of
internal reporting incentives has dominated discussion. But
other concerns have arisen as counsel have had time to reflect
on the rules, including the sheer number of lawsuits that could
arise from a single internal report.
A whistleblower can appeal the Securities and Exchange
Commissions (SEC) refusal to pay a bounty (but not the
amount of any bounty paid). Employee whistleblowers...