SGT believes whistleblowers play an important role in our society by coming forward with information about fraud and misconduct. Our firm is proud to have represented whistleblowers reporting misconduct, to have worked with the government on their behalf, and to have protected our clients from retaliation. In 1994 SGT settled a whistleblower action for $150 million against a defense contractor which was at the time the largest ever recovery for an action brought under the False Claims Act. The $22.5 million share our client received was similarly at the time the largest award ever paid out under the FCA.
There are several laws which provide mechanisms for reporting misconduct and protection for those who do. Laws with qui tam and/or whistleblower protection provisions include, but are not limited to, the False Claims Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the Sarbanes-Oxley Act.
False Claims Act
The federal False Claims Act allows individuals who have information about fraud being committed against the government to file a lawsuit on behalf of the government. If the lawsuit is successful, the individual may be eligible for a percentage of the recovery. The False Claims Act also provides protections for whistleblowers against retaliation.
Qui Tam Provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act is a federal law that was enacted in response to the financial crisis of 2008. The act includes a provision known as "qui tam," which allows individuals with information about securities or commodities fraud to sue on behalf of the government. If the lawsuit is successful, the individual may be eligible for a percentage of the recovery. The Dodd-Frank Wall Street Reform and Consumer Protection Act also provides protections for whistleblowers against retaliation.
Sarbanes-Oxley
The Sarbanes-Oxley Act is a federal law that was enacted in response to corporate scandals involving Enron and WorldCom. The act contains whistleblower provisions that protect individuals who report securities fraud from retaliation. Additionally, the act established the Securities and Exchange Commission's Office of Investor Affairs to help investors resolve complaints against public companies.
In addition to federal laws, many states have enacted their own laws protecting whistleblowers from retaliation. These laws vary from state to state, but typically provide protections similar to those found in federal law.
If you have knowledge of corporate wrongdoing, contact one of our SGT’s experienced whistleblower representation attorneys today. Taking action as a whistleblower can be complex and understanding your legal rights is critical to ensuring a positive outcome.
