SEC Tipsters’ Court Appeal Carries More Weight With Chevron Dead

A federal court appeal by two whistleblowers who helped the Securities and Exchange Commission recover $1 billion for defrauded investors, only to be blocked from collecting what would have been a record award, now shapes up as a test of the program’s future thanks to the Supreme Court.

The timing couldn’t be better for forensic accountant John McPherson and investor John Barr to argue Tuesday before the US Court of Appeals for the Fifth Circuit. Less than two weeks ago, the Supreme Court overturned the Chevron doctrine, which required judges to defer to an agency’s reasonable interpretation of statutes that are ambiguous or not clearly defined.

McPherson and Barr are in line for a potential $250 million payout if they can prove the SEC made up rules to avoid paying them one of the largest bounties in the program’s 13-year history….

Source: SEC Tipsters’ Court Appeal Carries More Weight With Chevron Dead