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SEC Whistleblower Short Sellers

The position that short sellers should be denied the benefits of their critically important whistleblowing efforts is short-sighted and contrary to the notions of our capitalistic markets. Moreover, it will serve only to disincentive a vital constituency of the SEC Whistleblower Program, which, in turn, will degrade the effectiveness of the SEC's enforcement program.

4 minute read August 01, 2024 at 12:05 AM
By
David R. Chase and Scott Silver
SEC Whistleblower Short Sellers

Recently, criticism has been leveled against the practice of the SEC awarding bounties to short sellers who potentially financially benefit twice from blowing the whistle and reporting violations of the federal securities laws to the SEC under its whistleblower program.

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