Dave Stuart and Kyle Gazis Author Article on the SEC’s Whistleblower Program and its Effects on Companies Seeking to Address the Risks of FCPA Violations

An article authored by Cravath partner David M. Stuart and associate Kyle S. Gazis, entitled “The SEC as the Whistleblower Program’s Advocate: Severance Agreements and FCPA Investigations,” appeared in the October 12, 2016, issue of The FCPA Report. The article discusses the increasing size and frequency of SEC whistleblower awards and the growing number of whistleblower tips that come from overseas, which suggest an expanding role for whistleblowers in the SEC’s investigations of FCPA violations. Based on this, the article notes steps for companies to consider as part of their internal investigations, in encouraging internal reporting mechanisms and, after recent SEC actions, in negotiating severance agreements with their employees, which are necessary to ensure that companies safeguard their ability to respond to allegations of wrongdoing in ways that are consistent with the SEC’s expectations for its Whistleblower Program.

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