Can Disclosure About Misleading Earnings Projections Qualify for an SEC Whistleblower Award?
Penalties in the millions are a real possibility.
A recent enforcement action has one company handing over a $34.5 million penalty. This action demonstrates how the failure to reveal known increases in risk regarding a company’s ability to reach a vital financial goal can defy the anti-fraud provisions of the Securities Act of 1933. This white paper reviews that action and what final outcome looked like.