DOJ Launches Antitrust Whistleblower Rewards Program
On July 8, the Department of Justice Antitrust Division announced its first-ever Whistleblower Rewards Program, offering to pay from 15% to 30% of criminal fines and other recoveries that total at least $1 million to individuals who report antitrust crimes.
The program's financial incentives fundamentally change the antitrust enforcement landscape, marking a significant escalation in DOJ enforcement strategy. DOJ's promise to "break down walls of secrecy" through financial rewards means that anti-competitive conduct faces unprecedented scrutiny from both regulators and incentivized insiders. "This program raises the stakes," warned Assistant Attorney General Abigail Slater.
The program targets price fixing, bid rigging, market allocation schemes, and related federal crimes. Whistleblowers can report violations through a dedicated DOJ webpage at www.justice.gov/atr/whistleblower-rewards. The program’s language suggests broad applicability across a wide range of industries. DOJ specifically mentioned crimes affecting "consumers, taxpayers, and free market competition across industries from healthcare to agriculture."
WHAT THIS MEANS
In Banking and Financial Services. The banking industry is moving quickly in the current regulatory environment with many financial institutions expanding, merging, and leveraging AI where possible to help keep a competitive edge and grow. Financial institutions may face scrutiny if they provide platforms to process transactions for targeted industries, perform advisory services, or knowingly facilitate or finance anticompetitive arrangements. Many companies are also seeking bank charters and licenses in the current industry-friendly bank regulatory environment. Companies should ensure any current or anticipated third-party partnership arrangements do not expose them on this front and potentially jeopardize broader initiatives for charters or licenses.
In Healthcare, Tech, and Sciences. Healthcare companies, pharmaceutical manufacturers, agricultural businesses, and technology firms should expect heightened enforcement as the program creates new pipelines for detecting previously hidden antitrust violations.
TAKEAWAY
The message is clear: antitrust compliance is no longer optional, and the risk of detection has never been higher. Affiliated persons and employees with knowledge of anticompetitive conduct now have strong motivation to report directly to DOJ rather than through internal channels. Companies must proactively assess their competitive practices and strengthen compliance programs to avoid becoming targets of highly motivated whistleblowers.
For questions about how DOJ's new Whistleblower Rewards Program may affect your business and strategies, please contact our team.
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Seth Waxman is a Partner at Mitchell Sandler. He leads the White Collar Defense and Corporate Investigations Group. He represents financial institutions, financial service providers, mortgage lenders, health care companies, public officials and all other manner of businesses and individuals facing government investigations, criminal and civil actions, and regulatory enforcement. He is a nationally recognized former federal prosecutor with 30 years’ experience.
Bree Murphy is senior counsel at Mitchell Sandler. She has two decades of experience advocating for her clients in the boardroom and the courtroom as they navigate government scrutiny, internal investigations, civil litigation, and criminal prosecution. With a deep understanding of the impact an investigation may have on individuals and businesses, Bree defends and guides her clients with an eye towards minimizing stress and disruption.
Sean Hennessy is Counsel at Mitchell Sandler. He is a seasoned litigator and former federal enforcement attorney with extensive experience representing businesses and individuals in complex civil litigation, government investigations, and regulatory enforcement actions. He has served as a Trial Attorney in the Division of Enforcement at the Commodity Futures Trading Commission (CFTC), where he led high-stakes investigations and federal court prosecutions involving insider trading, market manipulation, financial fraud, and other misconduct. While at the CFTC, Sean served on the agency’s Digital Assets Task Force and was a key advisor to leadership on emerging legal and technological developments in crypto enforcement and regulation.
Chloé Dolsenhe is Senior Associate at Mitchell Sandler. She specializes in regulatory compliance, government enforcement, and internal investigations primarily for financial technology companies, depository institutions and third-party service providers. She brings her experience as a government enforcement attorney where she leveraged AI in investigations and led the Generative AI Working Group in the Enforcement Division of the Office of the Comptroller of the Currency. She advises clients seeking compliance guidance when integrating artificial intelligence and integrating digital assets into their consumer products.