A Mighty Wind

Thursday, April 26, 2018 - 15:43

I guess you can forgive Labaton Sucharow for blowing its own horn – or should we say whistle? The 60-lawyer securities litigation boutique, which lays claim to more than $12 billion in recoveries, last month reeled in a cool $83 million for three clients in the SEC’s biggest-ever award in a whistleblower case. One warbler pulled down a cool $33 million, and the other two split $50 million, of a $415 million settlement by Merrill Lynch over what the FCPA Blog says was a a long-running options trading scheme that risked billions in customer cash to finance proprietary trading. The head of Labaton’s whistleblower practice, Jordan A. Thomas, who served as assistant chief litigation counsel in the SEC’s enforcement division, was a principal architect of the 2010 law, which the firm cheekily calls “one of the most successful public-private partnerships in U.S. history.” Spiking the ball, Thomas said, “Mark my word, this is only the beginning of a revolution in ethical action for corporate America. Bad actors are on notice.”