SOX Whistleblower Attorney
Learn About Serving as a Sarbanes Oxley Act (SOX) Whistleblower
The Sarbanes Oxley Act (SOX) establishes extensive compliance obligations for publicly traded companies. It also includes protections for whistleblowers. If you have material, non-public information about a SOX violation, you may qualify to come forward as a whistleblower, and you will want to discuss your next steps with a SOX whistleblower attorney promptly.
Serving as a SOX whistleblower typically involves filing a whistleblower complaint with the U.S. Securities and Exchange Commission (SEC). The SEC is the federal law enforcement agency tasked with enforcing corporate entities’ obligations under SOX, the Securities Exchange Act, and other federal securities laws. However, in some cases, exposing corporate fraud may involve filing a whistleblower complaint with the Criminal Division of the U.S. Department of Justice (DOJ) instead. If you are eligible to come forward, our attorneys can help you determine how best to proceed, and then we can work with the appropriate federal authorities on your behalf.
Requirements for Coming Forward Under the SOX Whistleblower Provisions
There are strict requirements for coming forward under the SEC’s Whistleblower Program and the Criminal Division’s Corporate Whistleblower Reward Program. Since most SOX claims involve coming forward to the SEC, we will focus on the SEC’s filing requirements here. If it makes sense for you to work with the DOJ to expose corporate wrongdoing instead, our experienced attorneys can walk you through this process during your free initial consultation.
The basic requirements for filing a SOX whistleblower claim with the SEC are as follows:
- Reporting an apparent SOX violation committed by a publicly traded company or one of the company’s subsidiaries;
- Coming forward with original information that is not currently known to the SEC or other federal law enforcement authorities;
- Having a reasonable belief that the information you are providing to the SEC reflects a violation of SOX; and,
- Complying with the SEC’s procedural whistleblower submission requirements.
In many cases, companies that violate SOX will also violate other federal securities laws. Along with reporting SOX violations, our attorneys can assist with reporting violations of the Securities Exchange Act and other federal securities violations as well. If you have information about shareholder fraud or any other form of securities fraud in addition to SOX noncompliance, we can help you prepare a comprehensive whistleblower complaint to submit to the SEC.
SOX Whistleblower Protections and Rewards
Corporate whistleblowers who come forward under the Sarbanes-Oxley Act (SOX) are entitled to strict confidentiality protections. SOX whistleblowers can also come forward anonymously if they engage federal whistleblower counsel. SOX also strictly prohibits whistleblower retaliation, and employees who experience retaliation are entitled to seek remedies including:
- Front pay and/or double back pay with interest
- Other compensatory damages
- Reinstatement at your same seniority status (if you were fired or demoted)
- Special damages sustained as a result of the retaliation (including litigation costs, expert witness fees, and reasonable attorneys’ fees)
Our attorneys will work with the SEC (or DOJ) to protect your identity, and it is unlikely that your employer will discern your identity in most cases. However, if you experience illegal retaliation after blowing the whistle under SOX, our attorneys will be prepared to take immediate legal action against your employer on your behalf.
When whistleblower complaints filed with the SEC or DOJ lead to successful enforcement actions resulting in the recovery of $1 million or more, whistleblowers are entitled a percentage of the funds the government recovers. In most cases, this can be up to 30% of the government’s recovery—and it is not unusual for securities whistleblower complaints to result in multi-million-dollar rewards.
SOX or the Dodd-Frank Act?
While whistleblowers can report SOX violations to the SEC and the DOJ, in many cases, serving as a whistleblower will technically involve coming forward under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Dodd-Frank Act establishes the SEC’s statutory authority to issue whistleblower rewards in qualifying cases. Here too, our experienced attorneys can explain everything you need to know during your free initial consultation; and, if you decide to come forward, we can file a complaint under the appropriate whistleblower statute (or statutes) on your behalf.
Our Attorneys Represent Corporate Whistleblowers Nationwide
Our SOX whistleblower attorneys represent corporate whistleblowers nationwide. If you have questions about coming forward under SOX, the Dodd-Frank Act, or any other federal securities law, we can provide the advice and insights you need to feel confident in your next steps. When you choose our attorneys to represent you, we will:
1. Assess Your Eligibility to Serve as a Whistleblower
Our attorneys will begin by assessing your eligibility to serve as a whistleblower. We will assess your eligibility to report any SOX violations as well as any other violations about which you have original information.
2. Help You Decide Whether to Come Forward
If you are eligible to serve as a whistleblower, we will help you decide whether to come forward. Timing can be important in securities whistleblower cases, so we will do our part to help you make an informed decision as quickly as possible.
3. Prepare Your Whistleblower Submission to the SEC or DOJ
If you decide to come forward, we will prepare your whistleblower submission to the SEC or DOJ. Our attorneys have significant experience representing whistleblower clients in corporate fraud cases, and we are intimately familiar with both agencies’ requirements for whistleblower submissions.
4. Protect Your Identity While Working with the Government on Your Behalf
We will protect your identity throughout the process—and, as we mentioned above, most SOX whistleblowers will not experience harassment or other adverse employment action. We will also work directly with the government on your behalf as it pursues administrative enforcement, civil action, or criminal prosecution.
5. Assist with Collecting Your Whistleblower Reward (if Applicable)
If your whistleblower complaint leads to a final decision resulting in civil or criminal liability or a settlement of $1 million or more, our attorneys will assist with collecting your whistleblower award. Securities whistleblower reward amounts are determined based on several factors, and our attorneys can seek a reward that is commensurate with the value of the information you provided.
FAQs: Filing a SOX Whistleblower Claim with the Federal Government
Is blowing the whistle on corporate fraud under SOX classified as a “protected activity”?
Yes, blowing the whistle on corporate fraud under SOX is classified as a “protected activity.” This means that companies are prohibited from retaliating against SOX whistleblowers—whether they do so explicitly or an employee’s whistleblower complaint is the true basis for a pretextual adverse employment action.
What are my rights if I experience an adverse employment action as a SOX whistleblower?
While it is unlikely that you will experience retaliation as a SOX whistleblower (because it is unlikely that your employer will discern your identity), if you experience retaliation, you will have clear legal rights. Demoted employees, former employees who were fired, and others who are victims of unlawful adverse employment actions can seek monetary damages, reinstatement, and other appropriate remedies.
If I file a SOX whistleblower claim, will I have to go to federal court?
It is highly unlikely that you will have to go to federal court as a SOX whistleblower. Most successful SOX enforcement cases end with out-of-court settlements between the targeted corporation and the SEC or DOJ. If the SEC or DOJ does not settle your case, our attorneys will be able to help you make an informed decision about testifying at the appropriate time.
Can I file a whistleblower complaint if my employer doesn’t have securities registered with the SEC?
While SOX’s recordkeeping and reporting requirements apply to publicly-traded companies, employees (and former employees) of private companies may be able to report securities violations under a variety of other federal statutes. If you have information about a securities law violation committed by a private company, our attorneys can assess your options for coming forward.
Can I file a SOX whistleblower complaint if I participated in the violation I am prepared to report?
As a general rule, employees who participated in SOX violations are eligible to file whistleblower complaints with the SEC—provided that they were not primarily responsible for the violation(s) at issue. If your involvement was a contributing factor in the violation you are prepared to disclose, our attorneys can assess whether you are eligible to come forward as a “culpable whistleblower” to the SEC or DOJ.
Schedule a Free Initial Consultation with an Experienced SOX Whistleblower Attorney
If you need to know more about blowing the whistle under the Sarbanes-Oxley Act (SOX), we encourage you to contact us for a free initial consultation. Our attorneys can explain the requirements for coming forward, what to expect if you decide to come forward, and how we can work effectively with the SEC or DOJ on your behalf. To schedule an appointment with an experienced SOX whistleblower attorney as soon as possible, call 866-320-3959 or tell us how we can reach you online now.