We Represent Professional Short Sellers Submitting Tips To The SEC Office Of The Whistleblower

If you’re a short-seller, it may benefit you to submit information about wrongdoing at a company you’re shorting to the SEC Office of the Whistleblower before you make your report public.

Learning about a company's misconduct or other securities law violations can quickly turn a short seller into a whistleblower. If you or someone you know is a short seller who has information that the SEC might be interested in, our office can help you determine if the SEC might investigate and guide you through the process.

Our lawyers are leading professionals and we respect your confidentiality while helping you navigate the SEC whistleblower office. We frequently write about the important role short sellers play in the markets and our thought leadership is frequently covered by the press. Our article “In Defense Of SEC Whistleblower Short Sellers: They Deserve To Have Their Cake And Eat It Too” is considered a leading piece of advocacy on behalf of short sellers.

Not all SEC whistleblowers are insiders at the company they report for misconduct. Outsiders can participate in the SEC Whistleblower Program by providing original analysis of publicly available information.

Even though short sellers are outsiders, they frequently know a company’s business operations and may uncover a company’s accounting irregularities, fraud, mismanagement, or other misconduct. Short sellers may also interview multiple parties and aggregate information from various sources.

When short sellers investigate a stock for potential investment, they closely monitor a company's finances. This thorough research and due diligence can lead to finding information that the company thought it could hide from the investing public and the SEC. Even as outsiders, they can detect and discover misconduct and wrongdoing that the SEC may be unaware of. The short-seller's information can help make an investigation and enforcement action easier for the SEC staff.

Since it began in 2011, the SEC’s Whistleblower Program has received thousands of tips. The SEC has awarded over $2.2 billion to 444 individuals who submitted information that led to a successful enforcement action and $1 million in monetary.

Activist short-sellers make up an estimated 40% of whistleblower awards. These are sellers who regularly report information to the SEC and receive a bounty. The SEC Whistleblower Bounty Program and activist short sellers have transformed corporate fraud detection and increased the speed and efficiency of their investigative process. Our lawyers work with you as your advocate while maintaining confidentiality and providing legal guidance.

Experienced short-sellers should seriously consider working with an SEC Whistleblower Attorney before submitting any information to the SEC, even if they have submitted information before. An attorney can help:

• Determine if you have a viable claim for the SEC
• Ensure that your submission is compliant and follows all SEC rules and regulations.
• Prepare and format your information so the SEC will review everything, including focusing on evidence, clearly framing allegations, and presenting the claim to increase the likelihood of an investigation, enforcement action, and significant awards.
• Submit your information anonymously.
• Advocate for your claim, assist during interviews, and offer expert analysis and supplemental evidence that regulators will acknowledge.
• Protect your rights and your anonymity throughout the process
• Work to maximize your award according to SEC requirements
• Guide you through an appeal should your claim be denied

By working with an SEC whistleblower attorney, short sellers can strengthen the credibility and effectiveness of their reporting, secure legal protection, and increase their chances of achieving a meaningful regulatory impact as well as financial compensation for their efforts.

If you uncover information that you believe should be reported to the SEC, talk to one of our SEC whistleblower attorneys about your case. We’ll discuss your case with you and how we can increase your chances of a successful claim that leads to a whistleblower award.

With expert preparation and advocacy, our SEC whistleblower attorneys can:

• Help you protect your identity. We have experience in submitting anonymous tips and ensuring your confidentiality throughout the SEC's investigation process.
• Navigate the complexities of SEC whistleblower law. Interpreting the SEC's rules can be difficult, especially for short sellers who may be concerned about market impact or regulatory scrutiny. We'll guide you through every step to minimize personal risk and protect your interests.
• Advocate on your behalf with the SEC. If the SEC requests additional information or an interview, we will represent you and ensure your voice is heard while maintaining compliance with all legal standards.
• Safeguard against retaliation or legal exposure. We’ll advise you regarding potential risks and legal protections, including how whistleblower status may shield you from certain types of litigation or regulatory action.