> So the shareholders in that company got screwed But did they? The company already had rainy day money set aside, so it was adequately priced in to the share

> So the shareholders in that company got screwed But did they? The company already had rainy day money set aside, so it was adequately priced in to the share price by now. Did the executive wait till after the regulatory filing came out with the misstatement just so they could rat to the SEC? Maybe, there's no consequence in doing things that way. In other more detailed cases, an employee tries to raise an issue internally and gets ignored or stonewalled by higher ups, and then eventually gets to the SEC. These things take time, so it would be equally as difficult to define 'bad incentive, too late', let alone being legally inconsequential from the government's perspective to the whistleblower