Before the Whistle Blows – Understanding the Basics of Whistleblower Lawsuits
A whistleblower is an individual who reports any wrongful actions of a company or organization, usually someone who has insider information.
In many cases, whistleblowers are former or even current employees or members of an organization. They could also have access to an organization’s practices, documents, and private information. Whistleblower lawsuits can be filed against businesses and the government.
If you have information or questions about government or corporate bad acts, please contact us.
Attorneys can provide specialized services and protection from retaliation by a company. These lawyers use our laws to prevent any harm to the whistleblower. Whistleblower laws have become a serious deterrent for businesses and organizations.
Claims, settlements, and grounds for whistleblower lawsuits
For lawsuits brought in the public interest, whistleblowers generally receive a part of the money that a business has to pay.
Examples of whistleblower or qui tam cases include companies who are :
- committing securities fraud,
- money laundering,
- manufacturing products without complying with safety standards,
- doing unfair business practices such as accounting fraud,
- and corporate corruption are common grounds for whistleblower litigation.
The Sarbanes-Oxley Act
Among the most common whistleblower lawsuits involve cases of companies violating the Sarbanes-Oxley Act of 2002, which defines the practices that government as well as businesses need to follow. Some requirements include disclosing accurate financial reports, getting external auditors, and preventing corporate fraud.
Also, attorneys report that they are frequently approached by employees of health products and tobacco companies to blow the whistle against practices such as substandard manufacturing materials, production of banned substances, and illegal dumping of biochemical waste.
Qui Tam – empowering and protecting whistleblowers
Qui Tam, another term for whistleblower, refers to a group of laws established to empower whistleblowers and protect them from any harm caused by illegal retaliation. Qui Tam laws enable the whistleblower to seek damages on the government’s behalf, with a reward averaging between 15 to 30 percent of the claim settlement amount. These laws also protect individuals from being forced into negotiations or charged with any unreasonable lawsuits as a retaliation of their whistleblowing.
If you have information or questions about government or corporate wrong going, please contact us.