An attorney who disclosed information about his client to the Securities and Exchange Commission (SEC) is ineligible for a whistleblower award, a federal appeals court has ruled. The court found that the attorney’s disclosure violated state bar rules, specifically those of Florida, where certain conditions must be met for such disclosures to be permissible.
Under the SEC’s whistleblower program rules, attorneys are generally prohibited from receiving awards if the information shared was obtained through the representation of a client, unless such disclosure is allowed under state bar rules or SEC attorney conduct regulations.
The case in question ties back to a 2018 SEC enforcement action. According to the ruling, Florida bar rules do allow for certain exceptions where disclosure is deemed necessary to serve the client’s interest. However, in this instance, the attorney’s actions did not fulfill those criteria.
For further details, you can read the full article here.