TreatiseTreatise

Corporate Whistleblowing in the Sarbanes-Oxley/Dodd-Frank Era
(2nd Edition)

 by Michael Delikat, Renee Phillips
 
 Copyright: 2011-2013
 Last Updated: August 2013

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Product Details

  • ISBN Number: 9781402416590
  • Page Count: 1180
  • Number of Volumes: 1
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This second edition of Corporate Whistleblowing in the Sarbanes-Oxley/Dodd-Frank Era is designed to provide the practitioner, companies, and individuals who believe they have claims under the Sarbanes-Oxley Act or Dodd-Frank Act with a detailed understanding of the whistleblower provisions of the Acts, their regulations, and the rapidly developing case law coming both from the administrative process and the federal courts. With the planned supplements, we hope this work will be an invaluable resource for keeping the various constituencies up to date on these important federal causes of action.

Corporate Whistleblowing in the Sarbanes-Oxley/Dodd-Frank Era also shows you how to appeal OSHA determinations and administrative law judge decisions, how to successfully litigate these whistleblower claims in federal court, and how to minimize potential exposure under the Sarbanes-Oxley and Dodd-Frank Acts.

Updated at least once a year, Corporate Whistleblowing in the Sarbanes-Oxley/Dodd-Frank Era is essential reading for corporate attorneys, managers, human resources professionals, litigators representing both employers and employees, as well as compliance officers and federal regulators.

  Preface
  Table of Contents
Chapter 1: The Sarbanes-Oxley Act
  • § 1:1 : Introduction1-1
  • § 1:2 : SOX Section 806 Regarding Whistleblowers1-2
  • § 1:3 : Legislative History1-3
  • § 1:4 : Retroactivity1-3
Chapter 2: Who Is Covered?
  • § 2:1 : Publicly Traded Companies, Subsidiaries, Affiliates, Officers, Employees, Contractors, Subcontractors, or Agents2-1
  • § 2:2 : Non-Publicly Traded Subsidiaries2-3
  • § 2:3 : Parent Company Liability for Subsidiaries’ Actions2-5
  • § 2:4 : Individual Liability2-8
  • § 2:5 : Covered Employees2-9
    • § 2:5.1 : Independent Contractors2-9
    • § 2:5.2 : Employees Outside of the United States2-11
    • § 2:5.3 : Employees of Contractors, Subcontractors or Agents of Publicly Traded Companies2-15
    • § 2:5.4 : Special Provisions for Securities Analysts2-17
Chapter 3: The Administrative Process
  • § 3:1 : Filing a Complaint with the Department of Labor, OSHA3-2
    • § 3:1.1 : Statute of Limitations3-3
      • [A] : Tolling3-3
      • [B] : Continuing Violations Doctrine3-7
  • § 3:2 : OSHA Claims Handling: Investigation of Sarbanes-Oxley Claims3-8
    • § 3:2.1 : Confidentiality, FOIA Requests3-8
    • § 3:2.2 : Preliminary Prima Facie Showing and Burden of Proof3-9
    • § 3:2.3 : Respondent’s Position Statement3-10
    • § 3:2.4 : Investigation and Determination3-11
      • [A] : Preliminary Reinstatement3-11
      • [B] : Economic Reinstatement3-12
      • [C] : Motion for Stay of Preliminary Reinstatement3-13
        • [C][1] : Irreparable Injury3-13
        • [C][2] : Likelihood of Success on the Merits3-14
        • [C][3] : Balancing of Harms3-14
      • [D] : Enforcement of Preliminary Reinstatement Orders3-14
        • [D][1] : Federal Court Enforcement3-15
        • [D][2] : ALJ Sanctions3-16
  • § 3:3 : Appeals of OSHA Investigator Determinations3-17
  • § 3:4 : Administrative Law Judge Hearing3-18
    • § 3:4.1 : Discovery3-18
    • § 3:4.2 : Expert Testimony3-19
    • § 3:4.3 : Amendments to the Complaint3-2
    • § 3:4.4 : Dispositive Motions3-22
  • § 3:5 : Appeals Process3-24
    • § 3:5.1 : Appeal to Administrative Review Board3-24
    • § 3:5.2 : Interlocutory Appeals to the ARB3-25
    • § 3:5.3 : Appeal to Court of Appeals3-26
  • § 3:6 : Settlement3-26
    • § 3:6.1 : Release of SOX Claims3-27
Chapter 4: Federal District Court and Alternative Forums
  • § 4:1 : Introduction4-1
    • § 4:1.1 : Statute of Limitations4-5
    • § 4:1.2 : Implications of Exhaustion Requirement4-6
    • § 4:1.3 : Jury Trial4-8
  • § 4:2 : Arbitration of Sarbanes-Oxley Claims4-9
    • § 4:2.1 : Arbitrability of SOX Claims Under FINRA Rules4-11
  • § 4:3 : Res Judicata and Collateral Estoppel4-12
  • § 4:4 : Is De Novo Review Available After Secretary’s Order Becomes Final?4-16
Chapter 5: Elements of a Prima Facie Case and Employer Defenses
  • § 5:1 : Introduction5-2
  • § 5:2 : Protected Activity5-3
    • § 5:2.1 : “Reasonable Belief” Standard5-5
      • [A] : Belief of an Existing, As Opposed to Future, Violation5-6
      • [B] : Objective and Subjective Components of Reasonable Belief Standard5-8
        • [B][1] : Objectively Reasonable Belief5-8
          • [B][1][a] : Reasonable Person with Similar Training and Experience5-8
          • [B][1][b] : Laws, Rules and Regulations Covered by Section 8065-10
            • [B][1][b][i] : Mail Fraud: 18 U.S.C. § 13415-10
            • [B][1][b][ii] : Wire Fraud: 18 U.S.C. § 13435-13
            • [B][1][b][iii] : Bank Fraud: 18 U.S.C. § 13445-15
            • [B][1][b][iv] : Securities Fraud: 18 U.S.C. § 13485-16
            • [B][1][b][v] : Any Rule or Regulation of the SEC5-18
            • [B][1][b][vi] : Any Provision of Federal Law Relating to Fraud Against Shareholders5-19
        • [B][2] : Fraud Against Shareholders5-23
        • [B][3] : Materiality5-25
        • [B][4] : Reporting Within Normal Job Duties5-28
        • [B][5] : Violations of Internal Company Policy5-30
        • [B][6] : Violations of State Law5-32
        • [B][7] : Violations by Third Party5-32
      • [C] : Subjectively Reasonable Belief5-33
      • [D] : “Provide Information”5-35
        • [D][1] : Whether Report Must Definitively and Specifically Relate to Enumerated Category of Violations5-36
        • [D][2] : Relevant Inquiry Is What Employee Actually Communicated at Time of Protected Activity5-40
        • [D][3] : Refusals to Engage in Behavior5-41
        • [D][4] : Providing Information Already Known to the Company5-43
        • [D][5] : Providing Information Already Known to the Public5-44
        • [D][6] : Providing Information About One’s Own Misconduct5-45
      • [E] : “Cause Information to Be Provided or Otherwise Assist”5-45
      • [F] : Authority to Investigate, Discover or Terminate Misconduct5-46
  • § 5:3 : Knowledge of Protected Activity5-47
    • § 5:3.1 : Knowledge by Decisionmakers5-48
  • § 5:4 : Adverse Action5-50
    • § 5:4.1 : Burlington Northern Standard5-51
    • § 5:4.2 : Menendez v. Halliburton Standard5-52
    • § 5:4.3 : Post-Termination Conduct5-53
  • § 5:5 : Causation5-54
    • § 5:5.1 : Temporal Proximity5-55
    • § 5:5.2 : Causal Nexus Between Protected Conduct and Adverse Action5-58
  • § 5:6 : Defenses: Employer’s Legitimate, Nondiscriminatory Reasons5-59
    • § 5:6.1 : Poor Performance5-59
    • § 5:6.2 : Violation of Company Policy5-61
    • § 5:6.3 : Reduction in Force5-62
    • § 5:6.4 : Mixed Motive Cases5-63
  • § 5:7 : Pretext5-65
Chapter 6: Remedies
  • § 6:1 : Civil Remedies6-1
    • § 6:1.1 : Compensatory Damages6-2
      • [A] : Reinstatement6-2
      • [B] : Back Pay with Interest6-6
      • [C] : Special Damages (Litigation Costs, Expert Witness Fees and Reasonable Attorneys’ Fees)6-8
      • [D] : Additional “Relief Necessary to Make the Employee Whole”6-9
        • [D][1] : Front Pay6-10
        • [D][2] : Relocation Costs and Job Search Expenses6-11
        • [D][3] : Injury to Reputation and Emotional Distress Damages (Non-Pecuniary Compensatory Damages)6-11
        • [D][4] : Other Compensatory Damages6-13
    • § 6:1.2 : Punitive Damages6-14
    • § 6:1.3 : Limitations on Damages6-15
      • [A] : “After-Acquired Evidence” of Complainant Misconduct6-15
      • [B] : Complainant’s Duty to Mitigate Damages6-15
      • [C] : Waiver6-17
      • [D] : Respondent’s Right to Attorneys’ Fees6-18
  • § 6:2 : Criminal Penalties6-20
Chapter 7: Complaint Procedures and Codes of Ethics
  • § 7:1 : Complaint Procedures Mandated by the Sarbanes-Oxley Act7-1
  • § 7:2 : Conflicts Between Sarbanes-Oxley 301 and EU Law7-2
  • § 7:3 : Code of Ethics Requirement7-7
Chapter 8: Special Provisions for Attorneys
  • § 8:1 : Introduction8-1
    • § 8:1.1 : Section 307 of SOX8-2
    • § 8:1.2 : The Client’s Right to Discharge Counsel or Wrongful Discharge?8-3
    • § 8:1.3 : Attorneys As Whistleblowers and Client Confidences: The Ethical Dilemma8-7
    • § 8:1.4 : The Dodd-Frank Act8-11
Chapter 9: Other Statutory and Public Policy Implications of SOX Whistleblower Provisions
  • § 9:1 : Preemption9-1
  • § 9:2 : California Whistleblower Statute9-1
  • § 9:3 : Public Policy Implications9-2
  • § 9:4 : Sarbanes-Oxley’s Potential to Resurrect Civil RICO Claims in the Employment Context9-6
Chapter 10: Practical Suggestions for Compliance
  • § 10:1 : Preventative Steps10-1
  • § 10:2 : Handling the Whistleblower10-2
Chapter 11: Internal Investigations
  • § 11:1 : The Importance of Internal Investigations11-2
    • § 11:1.1 : Compliance with Obligations Under Sarbanes-Oxley11-2
    • § 11:1.2 : Compliance with Fiduciary Duties11-2
    • § 11:1.3 : Cooperating with Government Investigations11-2
      • [A] : SEC—The Seaboard Report and the SEC’s January 2010 Cooperation Policy Statement11-3
      • [B] : DOJ—Principles of Federal Prosecution of Business Organizations11-5
  • § 11:2 : Triggering Events11-7
    • § 11:2.1 : Internal Investigations After Dodd-Frank11-7
  • § 11:3 : First Steps11-10
    • § 11:3.1 : Assessment of Seriousness11-11
    • § 11:3.2 : Early Identification of the End Game11-11
    • § 11:3.3 : Identifying the Decision Maker11-12
    • § 11:3.4 : Identifying the Investigator and His or Her Role11-12
    • § 11:3.5 : Defining the Scope of the Investigation11-13
    • § 11:3.6 : Getting Control of the Documents11-13
    • § 11:3.7 : Stop Wrongful Conduct Immediately11-13
  • § 11:4 : Documents11-14
    • § 11:4.1 : Secure the Documents11-14
    • § 11:4.2 : Document Collection11-14
    • § 11:4.3 : Document Review11-15
  • § 11:5 : Interviews11-16
    • § 11:5.1 : Interview Plan11-16
    • § 11:5.2 : Conducting the Interview11-16
      • [A] : Commencement of the Interview11-16
      • [B] : Interviewing Techniques11-17
      • [C] : Answering Interviewee Questions11-18
    • § 11:5.3 : Interview Memoranda11-18
  • § 11:6 : The Investigation Report11-19
Chapter 12: Special Crisis Communication Issues
  • § 12:1 : Introduction12-1
  • § 12:2 : Before the Whistleblower Goes Public12-2
    • § 12:2.1 : Organizing the Team12-2
    • § 12:2.2 : Fact-Gathering12-3
    • § 12:2.3 : Creating “Good” Facts12-3
    • § 12:2.4 : Message Development12-4
    • § 12:2.5 : Materials for Public Explanation12-4
    • § 12:2.6 : Designation of Spokespeople12-4
    • § 12:2.7 : Identifying Constituencies12-4
    • § 12:2.8 : Breaking the News Internally and to Other Constituencies12-5
    • § 12:2.9 : Third-Party Validators12-5
  • § 12:3 : Proactive Communication Strategy: The Predicate Story12-5
  • § 12:4 : Gone Public: Managing the Crisis by Rapid Response12-6
Chapter 13: Whistleblower Protections of the American Recovery and Reinvestment Act of 2009
  • § 13:1 : Introduction13-1
  • § 13:2 : Statute of Limitations13-2
  • § 13:3 : Who Is Covered?13-2
    • § 13:3.1 : “Non-Federal Employer”13-2
    • § 13:3.2 : Employees Covered by the Stimulus Act13-3
  • § 13:4 : What Complaints Are Covered?13-3
  • § 13:5 : Invoking the Protections of the Stimulus Act and Available Relief13-4
  • § 13:6 : Burdens of Proof13-5
  • § 13:7 : Private Right of Action13-5
  • § 13:8 : Other Provisions13-6
  • § 13:9 : Ramifications for Employers13-6
Chapter 14: Health Care Reform Law Contains New Whistleblower Protections for Employees
  • § 14:1 : Introduction14-1
  • § 14:2 : Statute of Limitations14-2
  • § 14:3 : What Complaints Are Covered?14-2
  • § 14:4 : Complaint Procedure and Burdens of Proof Under the Act14-2
  • § 14:5 : Private Right of Action14-3
  • § 14:6 : Relief Available Under the Act14-4
  • § 14:7 : Ramifications for Employers14-4
Chapter 15: IRS Whistleblower Statute
  • § 15:1 : Introduction15-1
  • § 15:2 : Two Award Programs15-2
  • § 15:3 : The Complaint Process15-2
    • § 15:3.1 : Eligible Complainants15-2
    • § 15:3.2 : Contents of the Complaint15-3
    • § 15:3.3 : Processing of the Complaint15-3
    • § 15:3.4 : The Award Determination15-3
    • § 15:3.5 : Appeals15-5
  • § 15:4 : Retaliation and Confidentiality15-5
  • § 15:5 : Enforcement15-6
Chapter 16: The Dodd-Frank Wall Street Reform and Consumer Protection Act
  • § 16:1 : Introduction16-1
  • § 16:2 : Sections 748 and 922: New SEC and CFTC Whistleblower Incentives and Protections16-2
  • § 16:3 : Sweeping Amendments to Section 1514A of the Sarbanes-Oxley Act16-3
  • § 16:4 : Section 1057: New Consumer Financial Whistleblower Protections16-3
Chapter 17: Section 922’s Whistleblower Bounty Provisions
  • § 17:1 : Introduction17-1
  • § 17:2 : Definition of Whistleblower17-2
  • § 17:3 : Eligibility for an Award17-3
    • § 17:3.1 : Voluntary Submission of Information17-4
    • § 17:3.2 : Original Information17-4
      • [A] : Independent Knowledge or Analysis17-5
      • [B] : Exclusions from Independent Knowledge and Analysis17-5
    • § 17:3.3 : Additional Eligibility Requirements17-7
  • § 17:4 : Incentives to Report Internally17-8
  • § 17:5 : Anonymous Reports to the SEC17-9
  • § 17:6 : SEC’s Communications with Employees17-9
  • § 17:7 : Amount of Award17-10
  • § 17:8 : Criteria for Determining Amount of Award17-10
    • § 17:8.1 : Factors That May Increase Award Amount17-11
    • § 17:8.2 : Factors That May Decrease Award Amount17-12
  • § 17:9 : No Amnesty17-13
  • § 17:10 : Awards to Whistleblowers Who Engage in Culpable Conduct17-14
  • § 17:11 : Issuance of Awards17-14
Chapter 18: Section 922’s Whistleblower Retaliation Protections
  • § 18:1 : Introduction18-1
  • § 18:2 : Retroactivity18-2
  • § 18:3 : Procedures and Statute of Limitations18-3
    • § 18:3.1 : Federal Court Action18-3
    • § 18:3.2 : Statute of Limitations18-4
  • § 18:4 : Scope of Protections18-4
    • § 18:4.1 : Categories of Protected Reporting18-4
      • [A] : SEC Final Rule18-4
      • [B] : Judicial Interpretations18-5
    • § 18:4.2 : Employees Outside of the United States18-8
    • § 18:4.3 : “Reasonable Belief” Standard18-9
    • § 18:4.4 : “Providing Information” to the SEC18-9
    • § 18:4.5 : Interaction with Bounty Provision18-10
  • § 18:5 : Remedies18-10
  • § 18:6 : Pre-Dispute Arbitration Agreements/Waivers of Claims18-11
Chapter 19: Section 748’s Whistleblower Bounty Provisions
  • § 19:1 : Introduction19-1
  • § 19:2 : Definition of Whistleblower19-3
  • § 19:3 : Eligibility for an Award19-3
    • § 19:3.1 : Voluntary Submission of Information19-4
    • § 19:3.2 : Original Information19-5
      • [A] : Independent Knowledge or Analysis19-5
      • [B] : Exclusions from Independent Knowledge19-5
    • § 19:3.3 : Additional Categories of Ineligible Individuals19-7
  • § 19:4 : Incentives to Report Internally19-8
  • § 19:5 : Anonymous Reports to the CFTC19-9
  • § 19:6 : CFTC’s Communications with Employees19-10
  • § 19:7 : Amount of Award19-10
  • § 19:8 : Criteria for Determining Amount of Award19-10
    • § 19:8.1 : Factors That May Increase Award Amount19-11
    • § 19:8.2 : Factors That May Decrease Award Amount19-13
  • § 19:9 : No Immunity19-13
  • § 19:10 : Awards to Whistleblowers Who Engage in Culpable Conduct19-14
Chapter 20: Section 748’s Whistleblower Anti-Retaliation Provisions
  • § 20:1 : Introduction20-1
  • § 20:2 : Who Is Covered?20-2
  • § 20:3 : Statute of Limitations and Procedures for Enforcement20-3
  • § 20:4 : Remedies20-3
  • § 20:5 : Pre-Dispute Arbitration Agreements/Waivers of Claims20-3
Chapter 21: Consumer Financial Whistleblower Protections of Section 1057
  • § 21:1 : Introduction21-1
  • § 21:2 : Covered Employees21-1
  • § 21:3 : Protected Activities21-2
  • § 21:4 : Claim Procedures21-3
  • § 21:5 : Burdens of Proof21-4
  • § 21:6 : Remedies21-4
  • § 21:7 : Penalty for Frivolous Claims21-5
  • § 21:8 : De Novo Review in Federal District Court21-5
  • § 21:9 : No Waiver Provision21-5
  Appendix Synopsis
Appendix A: Section 806 of the Sarbanes-Oxley Act: 18 U.S.C. § 1514A, as amended, and Legislative History
Appendix B: Other Selections from the Sarbanes-Oxley Act: Sections 301, 307, 406, and 501
Appendix C: 29 C.F.R. Part 1980: Procedures for the Handling of Retaliation Complaints Under Section 806 of the Sarbanes-Oxley Act of 2002
Appendix D: 29 C.F.R. Part 18: Rules of Practice and Procedure for Administrative Hearings Before the Office of Administrative Law Judges
Appendix E: Federal Whistleblower Statutes
Appendix F: State Whistleblower Statutes
Appendix G: Excerpts from OSHA Whistleblower Investigations Manual
Appendix H: Section 1553 of the American Recovery and Reinvestment Act of 2009
Appendix I: Section 922 of the Dodd-Frank Act: 15 U.S.C. §  78u-6, and Selections from Legislative History
Appendix J: Section 748 of the Dodd-Frank Act: 7 U.S.C. §  26
Appendix K: Section 1057 of the Dodd-Frank Act: 12 U.S.C. §  5567
Appendix L: 17 C.F.R. Parts 240 and 249: Securities Whistleblower Incentives and Protections
Appendix M: 17 C.F.R. Part 165: Whistleblower Incentives and Protection
  Table of Authorities
  Index

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