Imagine you’re in a corporate meeting about the year’s preliminary financial results.
They’re good. Really good.
And someone at the table says, wink, “Don’t forget to thank (our biggest competitor).”
In this scenario, covert talks with a rival yielded a price-fixing scheme that is padding the bottom lines for both companies. It may not feel quite right, but you’re afraid of getting into legal trouble and of retaliation from your peers if you object. Plus, the pay bonuses make a good salve for the conscience.
But now, a new Department of Justice (DOJ) whistleblower program, for the first time offering financial rewards to those who report antitrust crimes and related offenses, could dramatically change the math.
In the past, people or businesses that self-reported participation in a criminal antitrust matter could, at best, hope for leniency. And that was if they were first to the table and if their leniency bids were approved.
On top of that, the DOJ had to do heavy lifting to investigate these covert offenses, maybe find a cooperating witness, and cut a deal, sometimes with a company or individual who ideally was not a party the DOJ wanted to let off the hook. Meanwhile, these tough-to-detect crimes were harming consumers, taxpayers and free market competition across industries.
Now imagine that same corporate meeting under the new DOJ whistleblower program.
Previously, the pull was toward secrecy. Now, anyone in the know inside the corporations — whether participating in the scheme or not — could covertly expose the whole scheme and be financially rewarded. The DOJ wouldn’t have to offer leniency to any of the participating corporations.
At the same time, companies — now facing the ambiguous threat of a confidential informant that could cost the business money and individuals freedom — have an increased incentive to self-report (in pursuit of leniency) before the hammer drops.
Here’s how Assistant Attorney General Abigail Slater of the Antitrust Division put it in the announcement: “This program raises the stakes: If you’re fixing prices or rigging bids, don’t assume your scheme is safe — we will find and prosecute you, and someone you know may get a reward for helping us do it.”
DOJ antitrust criminal enforcement has trended down over the past decade; for example, the division filed 60 criminal cases in fiscal 2015, compared with 20 in fiscal 2024 and nine in fiscal 2023.
The DOJ hopes the new whistleblower rewards program, part of its broader DOJ whistleblower programs, will fill its investigative pipeline with “leads from individuals with firsthand knowledge of antitrust and related offenses that will help us break down those walls of secrecy and hold violators accountable,” Slater said.
And the rewards don’t cost taxpayers anything — they come out of the criminal fines and penalties paid by the perpetrators. Whistleblowers can be rewarded up to 30 percent of criminal fines (for perspective, a 2021 deal to settle price fixing and bid rigging charges involving broiler chickens included a fine of $110 million — 30 percent would be $33 million).
If you know about or suspect antitrust violations — or other wrongdoing (there are a plethora of whistleblower programs involving different types of fraud and crime) — it’s vital to engage an experienced whistleblower attorney early in the process to protect your interests and successfully present your information. Keller Grover offers free and confidential consultations; we can advise you about your case and about the best path forward. We are uniquely positioned to represent whistleblowers, with more than 30 years of combined experience litigating antitrust, fraud, and employment cases with billions in recoveries for our clients.