SOX Whistleblower Reward

SOX Whistleblowers May Be Entitled to Monetary Rewards from the Securities and Exchange Commission (SEC)

The Sarbanes Oxley Act (SOX) establishes various recordkeeping, reporting, and other compliance obligations for publicly traded companies. Along with the Securities Exchange Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), it provides the U.S. Securities and Exchange Commission (SEC) with the statutory authority to pursue enforcement actions targeting accounting fraud, securities fraud, and numerous other forms of corporate wrongdoing.

But, in order to hold corporations and corporate insiders accountable, the SEC needs to know that enforcement action is warranted. This is where Sarbanes Oxley whistleblowers can help.

We help whistleblowers come forward under SOX and all other applicable federal securities laws. Our attorneys represent individuals who are prepared to file whistleblower claims under federal law involving accounting irregularities, reporting violations, insider trading, manipulation of the financial markets, and all other types of securities violations. If you have (or think you may have) a SOX whistleblower case, our attorneys can explain everything you need to know—including the requirements for seeking a SOX whistleblower reward.

SOX Whistleblower Rewards Under the Dodd-Frank Act

The Sarbanes Oxley Act provides whistleblower protections to eligible individuals, including strong anti-retaliation provisions that apply to both public and private companies. However, while SOX whistleblower protections are available, SOX does not include provisions for whistleblower rewards.

Instead, individuals who come forward through the SEC’s whistleblower program can receive rewards under the Dodd-Frank Act. Under Dodd-Frank, whistleblowers who expose qualifying violations—including violations of SOX—are entitled to between 10% and 30% of the funds recovered through a successful enforcement action (provided that the enforcement action results in the recovery of $1 million or more).

In many cases, Sarbanes Oxley Act whistleblowers will have information about other securities law violations as well. Under Dodd-Frank, eligible individuals can file a single whistleblower complaint and receive a reward calculated as a percentage of the total amount the government recovers based on the information they provide. With this in mind, SOX whistleblowers may be able to report securities violations including (but not limited to):

• Bank fraud, bribery, and other forms of corporate fraud and corruption
• Corporate accounting and recordkeeping violations
• Falsifying consolidated financial statements or other financial records
• Failure to file financial reports when required
• Failure to maintain adequate internal controls to prevent accounting irregularities
• Insider trading (including tipping)
• Violations of the Securities and Exchange Act and other federal securities laws
• Corporations that violate SOX and other federal securities laws can face substantial monetary penalties. As a result, SOX whistleblower rewards can be substantial in many cases as well. The SEC has issued many of the largest whistleblower rewards in U.S. history, including the largest-ever whistleblower reward ($279 million) issued in 2023.

Reporting a SOX Violation as a Dodd-Frank Whistleblower

In most cases, coming forward as a SOX whistleblower involves filing a whistleblower complaint with the SEC in compliance with the whistleblower provisions of the Dodd-Frank Act. The SEC is the primary law enforcement agency responsible for enforcing SOX (among other federal securities laws), and the SEC prioritizes working with whistleblowers who are prepared to assist the Commission with pursuing high-value enforcement actions.

With that said, other government agencies also have an interest in enforcing compliance; and, in some cases, serving as a corporate whistleblower may involve contacting the U.S. Department of Justice (DOJ), the U.S. Commodity Futures Trading Commission (CFTC), or another federal government agency instead. Our attorneys can help you come forward through the appropriate means, and we can work with the appropriate federal authorities to help them pursue a civil action or criminal prosecution as warranted.

Claiming a Monetary Reward as a SOX Whistleblower

Under the Dodd-Frank Act, eligible whistleblowers who report federal securities law violations—including violations of SOX—are entitled to a monetary reward when they help the government successfully pursue monetary sanctions. As noted above, whistleblower rewards under the Dodd-Frank Act typically range from 10% to 30% of the monetary sanctions collected. When calculating whistleblower rewards, the SEC (along with the DOJ, CFTC, and other federal government agencies) considers factors including:

• The volume and value of the information contained in the whistleblower’s initial complaint
• Any additional information the whistleblower provides during his or her case
• The nature and severity of the violation (or violations) disclosed
• The monetary sanctions recovered and the importance of the case to the government’s ongoing enforcement efforts
• The extent (if any) to which the whistleblower was involved in the violation (or violations) disclosed

When we represent employees of publicly traded and private companies in federal securities whistleblower cases, we work with the appropriate federal authorities on behalf of our clients to maximize their reward eligibility. We have extensive experience in the area of securities whistleblower representation; and, as several of our attorneys prosecuted securities fraud at the DOJ before entering private practice, we are well-versed in the government’s investigative tactics and enforcement priorities. If you are interested in coming forward as a SOX whistleblower and maximizing your reward eligibility, we can guide you step-by-step through the process.

The Dodd-Frank Act requires whistleblowers to satisfy stringent eligibility criteria, and whistleblowers must comply with all applicable procedural requirements when coming forward as well. As a result, while hiring a lawyer is not legally required, working closely with an experienced federal whistleblower lawyer is strongly recommended. We represent SOX whistleblowers at no out-of-pocket cost, with our legal fees (if any) being calculated as a percentage of our client’s reward in successful cases.

FAQs: Reporting SOX Violations and Other Forms of Corporate Misconduct to the Federal Government

Discuss Your Case with an Experienced SOX Whistleblower Lawyer

If you think you may be eligible to serve as a SOX whistleblower and are interested in learning more about the process or the requirements for seeking a whistleblower reward, we strongly encourage you to get in touch. To discuss your case with an experienced SOX whistleblower lawyer in strict confidence as soon as possible, call us at 866-320-3959 or tell us how we can contact you online now.