SEC Awards More Than $300,000 to Whistleblower with Audit Responsibilities

SEC

The Securities and Exchange Commission today announced an award of more than $300,000 to a whistleblower whose high-quality information and continuing assistance significantly contributed to a successful enforcement action.

The whistleblower became aware of the potential securities law violations in connection with audit-related responsibilities. Although individuals with audit or compliance responsibilities are generally not eligible for awards, a whistleblower who reasonably believes that an entity is engaging in conduct that would impede the investigation falls within one of the exceptions to that rule. Here, the whistleblower had a reasonable basis to believe that the entity would impede the Commission's investigation. This is the fourth time the agency has paid a whistleblower with internal audit or compliance related responsibilities. read more »

U.S. Supreme Court takes up Goldman securities class action appeal

REUTERS

The U.S. Supreme Court on Friday agreed to hear Goldman Sachs Group Inc’s appeal in a securities fraud case that could redefine the ability of shareholders to pursue class actions against public companies whose stock prices fall.

Goldman is appealing an April decision from the 2nd U.S. Circuit Court of Appeals in Manhattan allowing a class action accusing the bank of hiding conflicts of interest when creating risky subprime securities before the 2008 financial crisis. read more »

German auditors supervisory boss leaves over Wirecard share deals

REUTERS

Germany’s Federal Office of Economics and Export Control Bafa said on Monday that the head of the agency that regulates auditors in Germany had been relieved of his duties over personal dealings in Wirecard shares weeks before its collapse.

The Wirecard case has become an embarrassment for German officials and authorities, who have been accused of failing to sufficiently monitor the company, which was once worth $28 billion and was widely praised as a rare German tech champion. read more »