Nearly 10 years ago, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, effectively overhauling the financial regulatory system. In 2011, the U.S. Securities & Exchange Commission (SEC) created a whistleblower rights program to incentivize citizens to report potential securities law violations. This blog post will detail what you should know about whistleblower rights.
Let’s start with the basics. Whistleblowing is defined as reporting a person, business, or organization that’s engaging in some sort of illicit activity. Should you believe that an entity is engaging any of the following practices, you have the right to report them appropriately:
- Breaking the law
- Violating government or industry rules/regulations
- Putting the health and/or safety of the public at risk
- Gross mismanagement or waste of funds
- Abuse of authority
A lot of folks are reluctant to report violations because they fear retaliation such as job loss, blacklisting, etc. But that’s why whistleblower law exists: to protect the people.
At Sadis & Goldberg, we routinely represent clients who believe that they have knowledge of potential security law violations and would like our firm to assist in the process. Keep in mind, though, that in order to qualify for a financial award, you must satisfy these four conditions:
- The person must “voluntarily provide” the information at issue.
- The person must provide the “original information.”
- The information must lead to a “successful enforcement action.”
- The successful enforcement action must lead to “monetary sanctions in excess of $1,000,000” in a single judicial or administrative action.
A whistleblower is entitled to an award if all four conditions are met. Just be aware that the award amount is in the sole discretion of the SEC.
How Our Security Litigation Attorneys Can Help
At Sadis & Goldberg, we stress to clients involved in these situations that no one should be punished for doing the right thing. Granted, it takes both integrity and courage to blow the whistle on corporate fraud or other illegal activities. You can feel comfortable knowing that countless whistleblower laws exist to protect you. Maybe you recently dealt with retaliation because you did the right thing and spoke up when nobody else did. On the other hand, maybe you have valuable information but just don’t know how to go about speaking out. In either case, our experienced law firm is here to help. For several decades, we’ve represented employees who have blown the whistle and reported fraudulent or improper practices.
Those in the Tri State area turn to Sadis & Goldberg when they’re in need of securities arbitration and litigation. In addition to educating clients on whistleblower rights, we can also help you familiarize yourself with shareholder rights. That’s not all, though. The law firm of Sadis & Goldberg specializes in hedge fund fraud, securities fraud, and stock broker fraud.
Don’t let your whistleblower claim fall by the wayside. Instead, trust the securities fraud attorneys at Sadis & Goldberg. We are the law firm to turn to in high-stakes cases.
Speak to one of our lawyers today.