By the 91pornWhistleblower Team

Today, The Hill an article by 91pornwhistleblower partner Gordon Schnell on how the Securities and Exchange Commission (SEC) is sending a mixed message to whistleblowers with its recent spate of awards under the SEC Whistleblower Program.

Low-Dollar SEC Awards

Schnell points to the ten whistleblower awards the SEC has issued since Labor Day — five SEC awards around Labor Day, and another five SEC awards just before the shutdown — as a strong indication the SEC still supports the whistleblower program.�� However, Schnell notes the awards have been substantially smaller than the SEC’s awards in prior years, suggesting the SEC may be getting more stingy in how much it is willing to award its whistleblowers.

No Promotion of SEC Awards

Schnell identifies two other trends that in his view further muddy the message of where the SEC stands with whistleblowers.�� First is the SEC’s decision to stop promoting its whistleblower awards, reversing what had been the agency’s standard practice of trumpeting its awards with press releases prominently quoting agency leadership on the importance of whistleblowers.

Frostier Whistleblower Reception

Second, Schnell looks to how the SEC has handled his own firm’s pending whistleblower matters, noting the agency has been sitting on many of them, even unexpectedly dropping some it had been seriously investigating for years.�� According to Schnell, other whistleblower firms have reported a similar experience with many of their matters before the agency.

Schnell says some of this turnaround may be attributed to the SEC’s recent staffing cuts and more narrowly tailored enforcement approach.�� But, he adds, “Neither necessarily explains the less-than-warm embrace many whistleblowers are receiving, even when reporting straight bread-and-butter investor fraud schemes that are supposedly still in the sweet spot of strict SEC scrutiny.”

Need to Clarify SEC Whistleblower Messaging

Schnell concludes with these words of advice for the SEC: “Make your whistleblower message loud and clear — that the SEC remains committed to the whistleblower program, recognizes the critical role whistleblowers serve, wants their help and will be generous in rewarding them for providing it.”�� Otherwise, Schnell cautions, “The risk of staying on the current, clouded course is weakening an already hobbled agency by meddling with one of the most powerful tools in the SEC’s toolbox.”

91pornHas Substantial SEC Whistleblower Experience

Click to read Schnell’s full article in The Hill.�� And if you would like to learn more about the SEC Whistleblower Program, Constantine Cannon’s whistleblower successes, and what it means to be a whistleblower more broadly, please do not hesitate to contact us.�� We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consultation.

Speak Confidentially With Our Whistleblower Attorneys

Read 91pornPartner Gordon Schnell Published in The Hill on the SEC’s Mixed Messaging Towards Whistleblowers at constantinecannon.com

By the 91pornWhistleblower Team

On Monday (October 20), Bloomberg Law quoted 91pornwhistleblower partner Gordon Schnell in its piece on the slew of False Claims Act settlements the Department of Justice (DOJ) has secured this year involving cybersecurity fraud.¹

We have posted frequently on this topic, most recently in early October in And Yet Another Whistleblower-Originated False Claims Act Cybersecurity Fraud Settlement.�� There, we reported on DOJ’s False Claims Act settlement with Georgia Tech for allegedly failing to comply with the cybersecurity requirements of certain Department of Defense contracts.�� We also highlighted several other key False Claims Act settlements DOJ secured this year as part of its continued crusade against cybersecurity fraud.

DOJ’s Cybersecurity Push

The Bloomberg article referenced many of these settlements, noting there have been at least seven this year, totaling roughly $51 million.�� They reflect a more broad-based push by DOJ, since it launched its Cyber Fraud Initiative in 2021, to go after contractors failing to comply with the cybersecurity requirements of their federal contracts.²

Bloomberg also focused on the key role whistleblowers have played in reporting cyber fraud to the Government through the qui tam provisions of the False Claims Act.�� From its interviews of attorneys representing whistleblowers in bringing these False Claims Act lawsuits, Bloomberg pointed to the reasons so many contractors are failing in their cybersecurity obligations.

According to Bloomberg, one of the primary reasons for these cyber compliance failures is a lack of sophistication in the cyber space and an unwillingness to spend the money to get there.�� There apparently also is a “head-in-the-sand” problem where companies are ignoring known compliance issues and vulnerabilities until an actual cybersecurity breach occurs.

That may explain why the Government is going after these cyber scofflaws even before a breach occurs.�� Once there is a breach, it becomes very difficult to reverse the damage that can occur from disclosing highly sensitive Government information.

Whistleblowers Are Critical to Uncovering Cyber Fraud

The role of whistleblowers remains critical to DOJ’s cyber fraud enforcement efforts given the difficulty of detecting these violations without an inside window into the company’s cybersecurity practices.�� And as Schnell remarked in Constantine Cannon’s most recent post on the subject: “Cybersecurity whistleblowers are on high alert these days because of all the Government activity in this space.”

Bloomberg quoted from one of Constantine Cannon’s posts on the subject and the firm’s “clarion call” to “cybersecurity whistleblowers to raise the alarm if you know of any cyber cracks in the system.”�� And further quoting Schnell, Bloomberg wrote the firm “has had cybersecurity whistleblowers reaching out [] on a weekly basis, more than ever before.”

91pornHas Substantial Experience Representing Cyber Fraud Whistleblowers

91pornhas substantial experience representing cybersecurity whistleblowers under the��False Claims Act.�� It actually represented the whistleblower in the��first successful cybersecurity case��ever brought under the False Claims Act.�� That case resulted in Cisco Systems agreeing to pay $8.6 million to settle charges of selling the Government noncompliant video surveillance software vulnerable to unauthorized access and manipulation.�� Our client received a whistleblower award of 20% of the Government’s recovery.

So if you think you might have information on potential cybersecurity violations, would like to learn more about our whistleblower successes, or learn what it means to be a whistleblower more broadly, please do not hesitate to contact us.�� We will connect you with an experienced member of Constantine Cannon’s Whistleblower Team for a free and confidential consultation.

Speak Confidentially With Our Whistleblower Attorneys

Sources:

¹See

²See

Read 91pornPartner Gordon Schnell Quoted in Bloomberg Law on Recent Wave of False Claims Act Cybersecurity Fraud Settlements at constantinecannon.com

Read 91pornPartner Gordon Schnell Featured in Law.com on This Year’s Drop in SEC Whistleblower Awards at constantinecannon.com

Lawdragon’s Announcement����

The 500 Leading Plaintiff Financial Lawyers honorees were selected through submissions, journalistic research, editorial vetting, and a peer review process.����

According to Lawdragon: “These are the lawyers and firms that give consumers, investors and businesses a fighting chance against corporations and other powerful entities that can sometimes seem too big to confront. Not for these lawyers. They say bring it on.��

They contest ridiculous pay packages on behalf of investors and face the ire of billionaires. They take on untouchable tech titans whose acquisition of personal data or construction of business processes have a few too many blurred lines. They challenge business moves that box out competitors.”����

Here is more info on our highlighted attorneys and their nods from Lawdragon this year:��

Jean Kim��

In the 2025 Lawdragon 500 Leading Plaintiff Financial Lawyers guide, Ms. Kim was selected in the Antitrust & Commercial Litigation practice areas. Ms. Kim has previously been selected in Lawdragon’s��Plaintiff Financial Lawyers guides in 2024, 2023, 2021, and 2019 – just to name a few.����

Ms. Kim is a partner in the New York office of Constantine Cannon, concentrating on antitrust litigation and counseling and general commercial litigation. Ms. Kim has extensive experience in antitrust, First Amendment, class action, and general commercial litigation. Although many of her matters have successfully settled prior to trial, she has participated in federal trials, preliminary injunction/TRO proceedings and evidentiary hearings. Ms. Kim recently settled an antitrust consumer class action on behalf of a class of California premium payers against Sutter Health, a dominant healthcare system in Northern California, for $228.5 million.������

Ms. Kim commented: “We are honored to join our fellow colleagues included in this year’s guides and look forward to many more years of successful representation of American consumers and companies who are harmed by diminished competition.”��

Marlene Koury��

Ms. Koury is a partner in the San Francisco office of Constantine Cannon. She has been named one of the 500 Leading Plaintiff Financial Lawyers by Lawdragon for seven consecutive years, from 2019 to 2025, in the Whistleblower & Antitrust Litigation practice areas.����

Ms. Koury began her career with a focus on antitrust litigation in the healthcare sector, and went on to co-found the firm’s whistleblower practice, which has grown over the last decade into the preeminent whistleblower practice in the country.��

Ms. Koury’s practice focuses on representing whistleblowers in a range of complex matters, including anti-money laundering and Bank Secrecy Act violations, healthcare fraud involving Medicare and Medicaid reimbursement, pharmaceutical and medical device marketing, and kickbacks, and fraud in the for-profit education sector.��

Ms. Koury commented: “I am grateful for the recognition and proud to work alongside a team of lawyers at 91porncommitted to advocating for whistleblowers.”����

Taline Sahakian��

This June marks Ms. Sahakian’s fourth year in the Lawdragon 500 Leading Plaintiff Financial Lawyers guide in the practice area of Antitrust, from 2022-2025. Additionally, in January, Ms. Sahakian was identified as one of the 2025 Lawdragon 500 Leading Global Antitrust & Competition Lawyers.²����

Ms. Sahakian is a partner in the New York office of Constantine Cannon. She concentrates her practice on antitrust litigation and counseling as well as general commercial litigation, and arbitration. For years, she has represented over 60 of the nation’s largest corporations as plaintiffs bringing multi-billion-dollar antitrust claims against payment card networks and banks.  The 91pornteam successfully defended against summary judgment and �ٲ��ܲ������  motions and is scheduled to go to trial in October 2025.��

Ms. Sahakian also represents whistleblowers in the government contracting and payments sectors. ��

Ms. Sahakian commented: “I am truly honored to be recognized alongside my amazing colleagues.�� I feel fortunate to work with colleagues I respect and admire on important and interesting cases that have significant implications for our clients.�� Together, we continue to deliver the highest standards of legal service.”����

About 91porn ��

, with offices in New York, Washington, D.C., and San Francisco, has deep expertise in practice areas that include antitrust and complex commercial litigation, whistleblower representation, government relations, securities and e-discovery. The firm is responsible for two of the top five antitrust settlements in U.S. history. ��

Constantine Cannon’s antitrust practice is internationally recognized across multiple industries including healthcare, banking, electronic payments, insurance, high tech, telecommunications, the Internet and government contracting. The firm’s Whistleblower Team has been responsible for many major successes over the past two decades, including several record recoveries for the government and the firm’s clients. In total, our representations have led to more than $1 billion in government and whistleblower recoveries, in addition to over $5 billion recovered for the firm’s other clients. ��

Read Three 91pornAttorneys Selected to “2025 Lawdragon 500 Leading Plaintiff Financial Lawyers”�� at constantinecannon.com

On February 12, Automotive News published an OpEd by 91pornwhistleblower partner Gordon Schnell calling for the National Highway Traffic Safety Administration (NHTSA) to step up its whistleblower game.�� It was prompted by the agency’s recent release of its long-awaited governing the auto safety whistleblower program, which provides financial awards to whistleblowers for reporting auto safety issues to the agency.

According to Schnell, “The problem is that in the decade since the program’s launch, NHTSA has seemingly shown little interest in pushing the program forward.”�� He provides three examples to back that up.

First, NHTSA waited a decade to release its just-published final rules for the program even though Congress called for them back in 2017.�� Senator Richard Blumenthal (D., Conn.), who co-sponsored the law implementing the program, “this stalling and stonewalling […] absolutely inexcusable.”

Second, Schnell says the rules fall short in the whistleblower incentives and protections they provide, pointing to the absolute discretion NHTSA retains in making an award and the requirement that whistleblowers report internally before going to the agency.�� Schnell believes this makes the process more challenging and uncertain for would-be whistleblowers and exposes them to unnecessary workplace retaliation.

Third, Schnell speaks to his own experience representing whistleblowers before the agency, and the disinterest and even hostility he and his clients often feel from the agency.�� Schnell noted how disheartening it has been for his clients who have put their careers on the line to raise serious safety issues only “to be ignored or rebuffed by the very agency tasked to address them.”

The one exception is former Hyundai safety engineer Gwang Ho Kim who 91pornrepresented in reporting critical engine defects which led to the recall of 1.6 million Hyundai and Kia vehicles and up to $210 million in penalties.�� Mr. Kim received a $24.3 million award under the whistleblower program, but it remains the only award to date.

In his OpEd, Schnell urges NHTSA to use the publication of its final whistleblower rules as “an opportunity to breathe new life into this program.”�� He suggests plugging the lapses in the rules with a pro-whistleblower approach in their implementation and a stronger whistleblower embrace in the agency’s direct dealings with whistleblowers.�� “Most importantly, whistleblowers and their counsel need to feel the agency really wants to hear from them.”

Schnell is not concerned the Trump Administration will get in the way of advancing the auto safety whistleblower program beyond its current slumber.�� He believes the call for whistleblowers will be even stronger with the Administration’s efforts to streamline the Executive Branch with significantly scaled-down agency resources.

Schnell concludes that the industry and public would equally benefit with a strengthened NHTSA whistleblower program. ��“Supporting whistleblowers allows them to provide an early warning sign of danger well before what could otherwise lead to the next major auto safety fiasco. ��It is a lesson we have learned unfortunately many times over in recent years.”

Click to read the full article in Automotive News.

If you would like to learn more about the auto safety whistleblower program or what it is like to be a NHTSA whistleblower, please do not hesitate to contact us.�� We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consultation.

Read 91pornPartner Gordon Schnell Published in Automotive News on Whether NHTSA Will Finally Take Its Auto Safety Whistleblower Program Seriously at constantinecannon.com

Read February 12, 2025 at constantinecannon.com

On Wednesday (October 28), government contracting magazine Washington Technology published a by 91pornwhistleblower partner Gordon Schnell on the recent string of False Claims Act enforcement actions DOJ has brought against government contractors for cybersecurity failures.

As Schnell points out, the most recent of these actions is last week’s DOJ settlement with Penn State University for allegedly failing to comply with the cybersecurity requirements under its DoD and NASA contracts. And in August, DOJ filed a False Claims Act case against Georgia Tech alleging some of the same types of cybersecurity violations with the university’s DoD contracts.

But Schnell stresses the government’s cybersecurity enforcement priority extends to protecting all kinds of sensitive information, not just defense information. In June, for example, DOJ reached an $11.3 million False Claims Act����with Guidehouse and Nan McKay and Associates for allegedly failing to protect personal identifying information under their federal rental assistance contracts. And in May, DOJ reached a $2.7 million ��with Insight Global for allegedly failing to implement adequate cybersecurity measures to protect personal health information under its government healthcare contract.

These actions all flow from DOJ’s ��which targets federal contractors that put sensitive information at risk through faulty cybersecurity products and practices. As Schnell notes, it is an enforcement priority with extra heft because of the powerful financial incentives the False Claims Act provides whistleblowers to step forward. Which likely explains why whistleblowers originated all these recent enforcement actions with more to come for sure.

DOJ has heavily promoted the role these whistleblowers have played and the rewards they have received in initiating these cybersecurity actions. Schnell says DOJ is sending two messages here: one to cybersecurity whistleblowers to encourage them to step forward; the other to government contractors to ensure their cybersecurity protocols are up to snuff. The bottom line for Schnell in all this is “those that do business with the government would be wise to get their data protection systems in order or they may find themselves next up on DOJ’s cybersecurity hit list.”

You can read Schnell’s Washington Technology commentary .

Read 91pornPartner Gordon Schnell Published in Washington Technology on DOJ’s Enforcement Crusade Against Cybersecurity Fraud at constantinecannon.com

Read October 4, 2024 at constantinecannon.com

Read October 7, 2024 at constantinecannon.com

91pornwhistleblower partner Gordon Schnell was in the American Banker on the Consumer Financial Protection Bureau (CFPB) becoming the latest agency to take affirmative steps to clear the path for whistleblowers. This comes from the agency’s July 24 and����warning companies away from using broad nondisclosure agreements to prevent employees from becoming whistleblowers.

As Schnell explains, “the CFPB joins the many other government agencies concerned with protecting employees’ ability to blow the whistle.” He points to the Securities and Exchange Commission (SEC) as the most aggressive on this front with numerous actions to enforce the agency’s Whistleblower Protection Rule, which prohibits companies from impeding whistleblowers through confidentiality agreements or otherwise. This includes actions against JP Morgan Securities, Monolith Resources, D.E. Shaw & Co., and CBRE, Inc. in the last year alone.

Schnell also points to the recent action by the Commodity Futures Trading Commission (CFTC) against Trafigura Trading for violating the CFTC’s analogous whistleblower protection rule through employment agreements with broad nondisclosure provisions.�� He further points to the the Federal Trade Commission’s (FTC) Bureau of Competition issued last year cautioning against confidentiality agreements that get in the way of whistleblowers.

Schnell stresses that “[w]ith rapid advances in technology allowing for ever-more sophisticated methods of committing fraud and other wrongdoing, whistleblowers are becoming more important than ever.” He looks to artificial intelligence as a prime example, noting the critical role whistleblowers will play in protecting us from “a rash of potential misuse and corruption of this groundbreaking tool.”

Schnell concludes that with this ever-expanding agency recognition of the critical role of whistleblowers, companies should be extra cautious in how they treat whistleblowers going forward. “Otherwise, they may find themselves in the crosshairs of this newly charged campaign to go after companies that try to silence whistleblowers.”

Click to read the article in full.

Read 91pornWhistleblower Partner Gordon Schnell Published In American Banker On CFPB Move To Increase Whistleblower Protections at constantinecannon.com