SOURCE: Milberg LLP

May 31, 2011 11:16 ET

Milberg LLP, Representing Corporate Whistleblowers, Praises New SEC Dodd-Frank Whistleblower Rules

NEW YORK, NY--(Marketwire - May 31, 2011) - Milberg LLP applauds the Securities and Exchange Commission ("SEC") for approving a final set of rules to implement its Securities Whistleblower Incentives and Protection program yesterday. According to Milberg partner Andrei Rado, "Based on our experience representing corporate whistleblowers, we believe the SEC rules provide powerful incentives for employees to overcome their fear of retaliation, step forward and report corporate fraud and other wrongdoing."

The final rules formally adopted by the SEC on May 25, include provisions allowing employees to go directly to the SEC with their complaints, rather than requiring them to exhaust internal corporate compliance programs. The new rules also protect employees who voluntarily choose to report concerns internally.

The SEC noted on its Fact Sheet released Wednesday that the new rules "strengthen incentives that had been proposed and add certain additional incentives intended to encourage employees to utilize their own company's internal compliance programs when appropriate to do so."

The new SEC regulations are based on Section 922 of the Dodd-Frank Wall Street Reform Bill, which pays incentives to employees who provide "original information" about corporate wrongdoing that results in a penalty of $1 million or more. Whistleblowers will receive between 10 and 30 percent of the penalty. The regulations also offer strong protection against retaliation.

Although Dodd-Frank was enacted into law less than a year ago, Milberg already represents numerous Dodd-Frank whistleblowers, and has already interacted with SEC enforcement officials in New York, Chicago, and California on Dodd Frank submissions. Milberg whistleblower clients have exposed a range of wrongful conduct, from improper revenue recognition to payment of foreign government officials for business. While Dodd-Frank is too new a law to have resulted in recoveries under its whistleblower provisions, Milberg's clients will benefit from its longstanding whistleblower practice as well as its expertise in securities litigation. The Firm has achieved numerous recoveries for whistleblowers under the False Claims Act, most recently obtaining as co-counsel a record-setting $85 million settlement in March, 2011 in a non-intervening case.

Although whistleblowers do not need to hire a lawyer to send in a complaint to the SEC, which can be done easily through the SEC's website, "whistleblowers have chosen Milberg to represent them under a contingency fee arrangement because of our decades-long history of successful investor protection litigation, our in-house capacity to thoroughly investigate claims, and our efforts to package submissions in a way that aims to maximize their appeal to the government," said Mr. Rado.

About Milberg
Milberg LLP is widely recognized as a leading class action and complex litigation firm, representing individual and institutional investors, unions, and consumers. Founded in 1965, the Firm has litigated landmark cases resulting in groundbreaking legal precedents and corporate governance reforms benefitting shareholders. Milberg also maintains an active whistleblower, or "Qui Tam," practice. Please visit the Milberg website (www.milberg.com) for more information about the Firm.

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