That means that being a whistleblower is strictly positive expected value in this case, which means that there is a heavy incentive to find something to blow the whistle about, no matter how flimsy. Additionally, the whistleblower has a strong incentive to add color about how bad these problems are.
People treat whistleblowers as unbiased sources of reliable information, but that could not be further from the truth. If you ask a tobacco salesman if their product has health consequences, they are going to say "no" (unless there is incontrovertible evidence of health consequences) the same way a whistleblower is going to say "this is super bad" about something that happens at a company (unless there is incontrovertible evidence that it was not bad). Understanding the bias of a source is very important.
> This can be worth tens of millions of dollars.
I don't understand why the potential value of the settlement casts any shade on the whistleblower.
I was not commenting on fake whistleblowers doing it in an attempt to trash a company's reputation.
With the Elon lawsuit with Twitter, it presents an opportunity for people to raise their public profile. (Many) Elon stans will be inclined to believe it no matter what. You will have stories written about you. You may well get interviewed or even called as a witness.
So Mudge here has a financial incentive and may want to raise his public profile. This is selective release of information to serve both of those ends. Again, it could still all be true. But always consider the source and what they ahve to gain.
This is just basic media literacy, really.
So me pointing out how Mudge might (and I really do mean "might"; I'm not saying he is biased) be biased should prompt you to see if there any flaws in his claims. If someone is disagreeing with his assertions, look at what they're saying, what their motivations are and if there are any obvious flaws.
I find this a good rule to live by: if someone says someone that agrees with your preconceived notions, whatever those might be, be doubly skeptical.
I'm not sure what your point here is. That the lawsuit can be worth a lot of money doesn't take away from the fact that the SEC has to prove their case in court. How does the value of the settlement raise any question about the legitimacy of the judgement?