As New Whistle-Blower Law Ups Ante, Plaintiff's Firms Are Flooded with Would-Be Claimants
Updated: Spurred by dreams of big-bucks awards under a new federal whistle-blower law, would-be claimants are flooding plaintiff’s firms with tips about alleged fraud at public companies.
“We’re inundated with calls,” partner Erika Kelton of Phillips & Cohen in Washington, D.C., tells Corporate Counsel.
And many of the tips seem to be based on legitimate concerns that could well lead to lawsuits, she adds.
A similar situation prevails at the Securities and Exchange Commission, which provides an online form for complaints.
Meanwhile, corporate defense counsel are also busy, the article reports, as outside firms representing major companies field questions from in-house lawyers about what the new law requires on their part.
A Wall Street Journal (sub. req.) article earlier this week provides more details about the Dodd-Frank Wall Street Reform and Consumer Protection Act (PDF).
Skadden Arps Slate Meagher & Flom published an article in July that summarizes the statute and makes recommendations for compliance.
The law firm also has Act a page of related material about Dodd-Frank on its site.
ABAJournal.com: “Whistle-Blowing to the SEC Is About to Become More Profitable”
Updated at 1:50 p.m. to include material from Skadden Arps Slate Meagher & Flom.