Hagens Berman’s managing partner Steve Berman today applauded the Securities and Exchange Commission’s (SEC) adoption of final rules for its new program encouraging whistleblowers to move forward in cases with the SEC.

“After years of litigating securities cases, we’ve witnessed firsthand the impact of fraud on investors,” said Berman. “Any tool that will help to deter violations or shine the light of public scrutiny on violators is good for investors and good for the economy.”

The SEC adopted the rules based on section 922 of the Dodd-Frank Wall Street Reform Bill, which allows the SEC to compensate individuals who provide original information to the SEC that leads to successful enforcement. To qualify, the whistleblower must provide information that leads to enforcement action with penalties totaling at least $1 million.

Hagens Berman has extensive experience in both securities and whistleblower cases. As one of the country’s leading securities litigation firms, Hagens Berman has aggressively pursued and won cases on behalf of shareholders and others in cases involving a wide range of issues. The firm recently expanded its existing whistleblower practice to include the SEC’s new program.

According to Berman, while the new SEC rules will increase much-needed scrutiny, it will also likely causes a big influx in the number of claims brought by whistleblowers to the attention of the SEC. According to media reports, the SEC has seen an increase of high-value tips rising from about two dozen per year to one or two per day since the original Dodd-Frank Bill was passed in July, 2010.

Berman noted that filing a successful whistleblower claim is a process that now more than ever requires knowledge of securities law and the SEC processes. “The ability to package a whistleblower claim in a way that is easily evaluated by the SEC should make a big difference in helping investigators identify the worthy claims. It’s not enough for a whistleblower to find lawyers who know traditional whistleblower law; you need a law firm with expertise and proven success litigating under the Securities Exchange Act, too.”

Historically, most whistleblower cases, also known as False Claims Act cases, involve allegations of fraud involving government funding, while securities whistleblower claims involve specific violations of securities laws and SEC rules, a complex set of laws and regulations.

In addition to the firm’s False Claims Act experience, Hagens Berman has obtained record settlements in securities cases including litigation against Charles Schwab & Co., which resulted in a $235 million settlement for investors and its case against OppenheimerFunds that settled for over $100 million. According to industry analysts, both cases are among the top six settlements in subprime and credit-crisis related securities litigation.

To learn more about Hagens Berman’s SEC Whistleblower practice, visit the firm’s website here.

About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is available at www.hbsslaw.com.

Editorial Note: Steve Berman, managing partner of Hagens Berman Sobol Shapiro, LLP, will be available for media interviews to discuss the SEC's new whistleblower program.