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Norberg Quoted in Law360 on SEC’s Interpretation of Tipster Protection Rules

April 20, 2022

Securities and Enforcement Litigation partner Jane Norberg was quoted in a recent article from Law360, “SEC Interpretation of Tipster Protection Rule Stirs Debate.” The article discusses the recent case between SEC and David Hansen, an executive at NS8 INC, who was accused of allegedly impeding an employee’s ability to communicate with the agency about a possible securities law violation in contravention of Securities Exchange Act Rule 21F-17.

Norberg, who served as Chief of the Office of the Whistleblower at the SEC prior to joining Arnold & Porter, highlighted the potential issue with the broad interpretation of the rule in this case. "On one hand, there is an argument that the actions [if known to the whistleblower], could have deterred or discouraged the whistleblower's communications with the SEC," Norberg said. "On the other hand, there is also the argument that this case sends a message to companies that they cannot restrict access to company documents even if an employee threatens to share them with non-government third parties, such as the media. Given the current news cycle of whistleblowers doing just that . . this case sets an uneasy precedent for employers."

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