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Whistleblowers

2012 Will Be Another Busy Year in Regulation and Compliance

Reese Darragh January 03, 2012

Amid holiday cheers and winter chills, legal experts say 2012 will be yet another busy year in regulation. Inside, we take a look at what's next for the SEC's Office of the Whistleblower, rulemaking under the Dodd-Frank Act, insider trading enforcement, and more.

Court Ruling Could Limit SOX Whistleblower Retaliation Claims

Reese Darragh August 30, 2011

Good news for companies concerned about lawsuits based on allegations of retaliating against whistleblowers: A recent district court ruling could make it harder for employees to claim whistleblower protection under the Sarbanes-Oxley Act. The court affirmed that employees have to show the allegations involve activity covered by SOX. Details inside.

Can Auditors Become Whistleblowers Under the SEC's New Program?

Tammy Whitehouse July 12, 2011

The SEC's new whistleblower rules exclude external auditors from participating in its bounty program, which rewards those who alert the SEC to corporate wrongdoing. But auditors still have some avenues to pursue a payout, lawyers say. "The net result is that auditors are able to become whistleblowers in some circumstances," says David Woodcock, a partner with law firm Vinson & Elkins. Details inside.

Life Under New Whistleblower Rules

Karen Kroll June 21, 2011

The SEC's new whistleblower bounty program is here, and corporate compliance departments should start acting accordingly. That means a review of employees exempted from collecting the rewards, a fresh look at confidentiality agreements, and more. Above all, encourage a culture of speaking up, because "The SEC is clearly pushing companies to self-report," says Robert Wild of the law firm Katten Muchin Rosenman.

Whistleblower Rules Could Set Off a Rash of Internal Investigations

Arielle Bikard June 01, 2011

The Securities and Exchange Commission has adopted final rules to reward whistleblowers whose tips lead to successful enforcement actions. While the final version added incentives for employees to report wrongdoing internally, corporate lawyers say the rules will lead to more internal investigations and make them more complex. Details inside.

Companies Fear Lawsuits, Higher Costs From Whistleblower Rules

Arielle Bikard April 26, 2011

As the SEC prepares to issue final rules on the whistleblower provisions of the Dodd-Frank Act, companies are raising concerns that the regulations will lead to more frivolous claims, more lawsuits, and higher compliance costs. Worse, companies say they will face fraud claims from unnamed sources that will be nearly impossible to investigate. Details inside.

Latest on Whistleblower Rules: Nothing Good

Matt Kelly January 24, 2011

Few issues burn up Compliance Week Editor Matt Kelly's e-mail box these days as much as the new whistleblower bounty rules soon to come from the SEC. Unfortunately, he writes, the latest signs from Washington suggest nothing good for corporate compliance departments. More inside.

Unintended Consequences of the SEC Whistleblower Program

Melissa Klein Aguilar December 13, 2010

The SEC's whistleblower bounty program isn't yet in place, but that hasn't stopped critics from pointing out some unintended consequences that could come from the rule. They say that the SEC will be overwhelmed and that whistleblowers will avoid reporting concerns to internal compliance programs. More details inside.

False Claims Recoveries Top $3 Billion in 2010

Melissa Klein Aguilar November 29, 2010

The Obama Administration is making good on its promise to crackdown on fraud against the government generally, and public healthcare programs in particular, according to the latest False Claims Act recovery statistics.The Department of Justice collected $3 billion in civil settlements and judgments in cases involving fraud against the government...

The Countdown to a Whistleblower Bounty Begins

Melissa Klein Aguilar November 09, 2010

Compliance executives, heres your chance: The Securities and Exchange Commissions proposed rules to pay whistleblowers who report securities violations are now out for comment.

Dodd-Frank Whistleblower Proposals Arrive

Melissa Klein Aguilar November 03, 2010

Let the comments commence: Compliance professionals finally have the details of the Securities and Exchange Commission's proposed rules to pay whistleblowers who report securities violations.The proposals, detailed in a 181-page release published for comment Nov. 3, implement the Dodd-Frank mandate to set up a program to pay awards of up...

Proposed Whistleblower Rules Promote Internal Reporting

Bruce Carton November 03, 2010

As we have discussed thoroughly here at Whistleblower Week Compliance Week, new whistleblower provisions were included in the Dodd-Frank Act that are expected to have major effects on both public companies and the SEC. Today, the Commission unanimously voted to propose a whistleblower program under Dodd-Frank that will to reward individuals...

Whistleblowers, Naked Access, Swaps on SEC Agenda

Melissa Klein Aguilar October 27, 2010

Compliance executives should soon get some much-desired clarity about how the new whistleblower bounty program provided for by the Dodd-Frank Act could impact their companies.Proposals related to the whistleblower provisions are among the items on the agenda for a Nov. 3 Securities and Exchange Commission open meeting.The SEC will consider whether to propose rules...

Data Shows Employee Fraud Incident Reports Declining

Melissa Aguilar October 20, 2010

A reminder to compliance executives that it might be a good time to check what's going on with your firm's reporting hotline, if you haven't done so lately: Recent data shows fraud incident reporting by employees is on the decline.Following a surge of in-house fraud reporting last year, fraud incident reports have...

GAO: Whistleblower Program Still Needs More Work

Melissa Aguilar September 20, 2010

The agency tasked with ensuring whistleblowers who report workplace misconduct are protected from retaliation still has plenty of room for improvement in meeting that mission, according to a government watchdog.The Occupational Safety and Health Administration needs to take several steps to shore up its Whistleblower Protection Program, including ensuring it...

SEC Ramping Up to Implement Dodd-Frank Reforms

Melissa Aguilar July 21, 2010

As compliance officers mull the impact of the Dodd-Frank Act on their organizations, the Securities and Exchange Commission is ramping up to do its part in implementing the various rulemakings and studies required under the law, which is slated to be signed by the President today.While the dollar cost of full...

Report Offers Hotline Benchmarking Data

Melissa Aguilar June 23, 2010

A new report offers benchmarking data for compliance officers looking to see how their whistleblower hotline stacks up against their industry peers.According to the 2010 Corporate Governance and Compliance Hotline Benchmarking Report published by The Network and BDO Consulting, personnel management incidents, which include human resources issues and incidents related to...

Whistleblower Ruling on SOX 806, De Novo Review

Melissa Aguilar April 12, 2010

A Massachusetts district court has addressed two thorny issues confronting employers defending against whistleblower claims brought under Sarbanes-Oxley: Who's protected under the statute and whether whistleblowers are entitled to a so-called second bite at the apple.A March 31 combined ruling by U.S. District Judge Douglas Woodlock addressed motions to dismiss in...

OIG Issues Recs to Overhaul SEC Bounty Program

Melissa Aguilar April 02, 2010

The Securities and Exchange Commission's bounty program for rewarding whistleblowers is sorely in need of an overhaul, according to the agency's Inspector General, which issued nine recommendations for improving the program.An OIG review of the program, which stemmed from an issue identified during its investigation of the SEC Madoff examination...

Whistleblowing to Media Not Protected Under SOX 806

Melissa Aguilar February 22, 2010

Employers and employees take note: Another district court ruling sheds light on what is and isn't protected whistleblowing activity under Section 806 of Sarbanes-Oxley.The U.S. District Court for the Western District of Washington has dismissed whistleblower claims brought by two former compliance auditors of the Boeing Company who were fired...

Survey: Companies Bracing for Litigation Wave

Melissa Aguilar October 19, 2009

Companies are bracing for a litigation wave in the coming year, according to a survey of 408 corporate counsels.According to Fulbright & Jaworksi's Annual Litigation Trends Survey Report, 83 percent of U.S. respondents said new litigation has been commenced against their companies in the past year, and 42 percent anticipate...

Court Ruling Both a Victory and Warning for Cos.

Melissa Aguilar June 15, 2009

A recent Circuit Court ruling on a retaliation claim may be viewed as a victory for employers, but it also serves as a warning for companies to tighten up their anti-retaliation training and policies, according to one employment law expert.Reversing an earlier position, a federal appeals court ruled this month...

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