Antitrust Division and U.S. Postal Service Announce First-Ever Whistleblower Award Under New Whistleblower Program

Authors: Barry Nigro, Joshua Roth, Joan Rosello

On January 29, 2026, the Antitrust Division and the U.S. Postal Service announced their first-ever whistleblower reward pursuant to their new whistleblower program. The whistleblower was awarded $1 million for providing information about an ongoing antitrust conspiracy that led to a Deferred Prosecution Agreement and a $3.28 million criminal fine.

Memorandum of Understanding Regarding the Whistleblower Rewards Program and Procedures

As discussed in a prior Client Alert, the Antitrust Division and the U.S. Postal Service announced a new whistleblower program on July 8, 2025.[1] That new program complements the Antitrust Division's long-standing leniency program and provides whistleblowers with a strong financial incentive to report suspected antitrust violations. Whistleblowers are eligible to receive awards of 15-30% of any criminal fine (in excess of $1 million) recovered by the Antitrust Division.[2]

Notably, the new program is limited to criminal violations that "affect" the U.S. Postal Service, its revenues, or its property.[3] That limitation has caused many practitioners to question how broadly the new program would be employed, and whether it would result in a significant increase in the number of whistleblowers.

Deferred Prosecution Agreement by EBLOCK Corporation

The $1 million whistleblower award described above is related to a Deferred Prosecution Agreement between the Antitrust Division and EBLOCK Corp.[4]

According to the Deferred Prosecution Agreement, EBLOCK (a Canadian corporation) acquired the assets of Company A in 2020 during the height of the COVID pandemic.[5] Because of COVID-related travel restrictions that were in place at the time, EBLOCK executives were not able to travel to the United States to conduct due diligence and relied on a management agreement to run Company A for more than a year after the acquisition.[6]

Company A was in the business of providing an online auction platform for the sale of vehicles to commercial buyers.[7] Prior to the acquisition (and unbeknownst to EBLOCK), Company A had been engaged in a long-standing conspiracy with Company B to manipulate online auctions for vehicles, including placing "shill" bids to artificially increase bid prices.[8] EBLOCK executives learned about this illegal activity in January 2021 and reportedly took steps to stop it.[9] However, legacy employees from Company A continued to engage in similar activity for at least another year.[10] The Antitrust Division determined that the purchases and sales affected by this conduct totaled approximately $16.24 million.[11]

As part of the Deferred Prosecution Agreement, EBLOCK agreed to pay a monetary penalty of $3.28 million and to implement a new compliance program.[12]

Whistleblower Announcement

On January 29, 2026, the Antitrust Division announced a $1 million whistleblower award in connection with the EBLOCK Deferred Prosecution Agreement.

In announcing the bounty, Deputy Assistant Attorney General Omeed A. Assefi emphasized how "[w]histleblowers serve as the Justice System's greatest disinfectant against criminal antitrust conspiracies."[13]

Chief Postal Inspector Gary Barksdale added that "[t]his award shows the commitment to the U.S. Postal Service and the Antitrust Division to support those who provide accurate, actionable intelligence about antitrust and related competition crimes with a connection to the U.S. Mail."[14]

The press release does not identify the whistleblower, but it explains that the whistleblower "led to the identification and dismantlement of a criminal antitrust conspiracy . . . ."[15] Although the press release does not describe the type of information that the whistleblower provided, the $1 million award was near the high end of the 15-30% range, suggesting that it was critical to uncovering the illegal activity.

The press release also states that EBLOCK "used the U.S. Mail to send documentation related to the scheme . . . ."[16] Notably, the press release does not reference any other ways in which the antitrust violations at issue "affected" the U.S. Postal Service, its revenues, or its property, and the Deferred Prosecution Agreement is silent on the issue. This suggests that the Antitrust Division and the U.S. Postal Service are interpreting the required "affects" very broadly, such that many (maybe most) antitrust violations will qualify for a whistleblower award.

Takeaways

Deputy Assistant Attorney General Assefi expects to see whistleblowers stepping forward with increased frequency, stating that "the race is faster now, because employees and their attorneys are incentivized to blow the whistle and beat their companies to the Division's doorstep."[17] We agree with that assessment.

In light of this new environment, it is more important than ever for companies to maintain and enforce effective antitrust compliance programs. Among other things, an effective compliance program should include well-publicized mechanisms (including anonymous compliance hotlines) for employees and others to report potential antitrust violations.

Once a potential antitrust violation is reported (or otherwise identified), companies need to move very quickly to conduct a thorough investigation and determine appropriate next steps, including potential remedial actions and self-disclosure. While it may not always be possible or appropriate, companies should also consider keeping employees and others who report potential antitrust violations updated about the progress of any related investigations. This is a concrete way for companies to demonstrate that they are taking reports seriously and investigating them fairly.

Additionally, the Deferred Prosecution Agreement here underscores the important role that antitrust due diligence and post-acquisition integration should play in any acquisition process. Much of the conduct at issue took place before EBLOCK acquired Company A. The fact that EBLOCK faced unprecedented challenges conducting due diligence during the COVID pandemic was not sufficient to avoid liability.

Effective due diligence and integration are also critical if companies want to benefit from the acquisition-focused "safe harbor" policy that the Antitrust Division announced in 2023. Under that policy, companies may be able to avoid prosecution if they (among other requirements) identify and report antitrust violations at an acquired entity within six months of the transaction.[18]

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