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Preface |
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Chapter 1: |
The Sarbanes-Oxley Act |
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- § 1:1 : Introduction1-1
- § 1:2 : SOX Section 806 Regarding Whistleblowers1-2
- § 1:3 : Legislative History1-3
- § 1:4 : Retroactivity1-3
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Chapter 2: |
Who Is Covered? |
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- § 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 Employees2-8
- § 2:5.1 : Independent Contractors2-9
- § 2:5.2 : Employees Outside of the United States2-10
- § 2:5.3 : Employees of Contractors, Subcontractors or Agents of Publicly Traded Companies2-14
- § 2:5.4 : Special Provisions for Securities Analysts2-16
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Chapter 3: |
The Administrative Process |
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- § 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 Complaint3-20
- § 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
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Chapter 4: |
Federal District Court and Alternative Forums |
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- § 4:1 : Introduction4-1
- § 4:1.1 : Implications of Exhaustion Requirement4-5
- § 4:1.2 : Jury Trial4-6
- § 4:2 : Arbitration of Sarbanes-Oxley Claims4-7
- § 4:2.1 : Arbitrability of SOX Claims Under FINRA Rules4-8
- § 4:3 : Res Judicata and Collateral Estoppel4-9
- § 4:4 : Is De Novo Review Available After Secretary’s Order Becomes Final?4-13
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Chapter 5: |
Elements of a Prima Facie Case and Employer Defenses |
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- § 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, Violation5-5
- [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 8065-9
- [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. § 13445-14
- [B][1][b][iv] : Securities Fraud: 18 U.S.C. § 13485-15
- [B][1][b][v] : Any Rule or Regulation of the SEC5-17
- [B][1][b][vi] : Any Provision of Federal Law Relating to Fraud Against Shareholders5-17
- [B][2] : Fraud Against Shareholders5-22
- [B][3] : Materiality5-23
- [B][4] : Reporting Within Normal Job Duties5-26
- [B][5] : Violations of Internal Company Policy5-27
- [B][6] : Violations of State Law5-30
- [B][7] : Violations by Third Party5-30
- [C] : Subjectively Reasonable Belief5-31
- [D] : “Provide Information”5-32
- [D][1] : Whether Report Must Definitively and Specifically Relate to Enumerated Category of Violations5-34
- [D][2] : Relevant Inquiry Is What Employee Actually Communicated at Time of Protected Activity5-37
- [D][3] : Refusals to Engage in Behavior5-38
- [D][4] : Providing Information Already Known to the Company5-40
- [D][5] : Providing Information Already Known to the Public5-41
- [D][6] : Providing Information About One’s Own Misconduct5-42
- [E] : “Cause Information to Be Provided or Otherwise Assist”5-42
- [F] : Authority to Investigate, Discover or Terminate Misconduct5-43
- § 5:3 : Knowledge of Protected Activity5-44
- § 5:3.1 : Knowledge by Decisionmakers5-45
- § 5:4 : Adverse Action5-47
- § 5:4.1 : Burlington Northern Standard5-48
- § 5:4.2 : Menendez v. Halliburton Standard5-49
- § 5:4.3 : Post-Termination Conduct5-50
- § 5:5 : Causation5-51
- § 5:5.1 : Temporal Proximity5-52
- § 5:5.2 : Causal Nexus Between Protected Conduct and Adverse Action5-55
- § 5:6 : Defenses: Employer’s Legitimate, Nondiscriminatory Reasons5-56
- § 5:6.1 : Poor Performance5-56
- § 5:6.2 : Violation of Company Policy5-58
- § 5:6.3 : Reduction in Force5-59
- § 5:6.4 : Mixed Motive Cases5-60
- § 5:7 : Pretext5-62
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Chapter 6: |
Remedies |
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- § 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 Damages6-14
- [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’ Fees6-17
- § 6:2 : Criminal Penalties6-19
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Chapter 7: |
Complaint Procedures and Codes of Ethics |
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- § 7:1 : Complaint Procedures Mandated by the Act7-1
- § 7:2 : Conflicts Between Sarbanes-Oxley 301 and EU Law7-2
- § 7:3 : Code of Ethics Requirement7-7
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Chapter 8: |
Special Provisions for Attorneys |
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- § 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
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Chapter 9: |
Other Statutory and Public Policy Implications of SOX Whistleblower Provisions |
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- § 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 Context9-5
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Chapter 10: |
Practical Suggestions for Compliance |
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- § 10:1 : Preventative Steps10-1
- § 10:2 : Handling the Whistleblower10-2
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Chapter 11: |
Internal Investigations |
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- § 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 Maker11-11
- § 11:3.4 : Identifying the Investigator and His or Her Role11-11
- § 11:3.5 : Defining the Scope of the Investigation11-12
- § 11:3.6 : Getting Control of the Documents11-13
- § 11:3.7 : Stop Wrongful Conduct Immediately11-13
- § 11:4 : Documents11-13
- § 11:4.1 : Secure the Documents11-13
- § 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
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Chapter 12: |
Special Crisis Communication Issues |
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- § 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
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Chapter 13: |
Whistleblower Protections of the American Recovery and Reinvestment Act of 2009 |
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- § 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
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Chapter 14: |
Health Care Reform Law Contains New Whistleblower Protections for Employees |
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- § 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 Act14-3
- § 14:7 : Ramifications for Employers14-4
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Chapter 15: |
The Dodd-Frank Wall Street Reform and Consumer Protection Act |
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- § 15:1 : Introduction15-1
- § 15:2 : Sections 748 and 922: New SEC and CFTC Whistleblower Incentives and Protections15-2
- § 15:3 : Sweeping Amendments to Section 1514A of the Sarbanes-Oxley Act15-3
- § 15:4 : Section 1057: New Consumer Financial Whistleblower Protections15-3
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Chapter 16: |
Section 922's Whistleblower Bounty Provisions |
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- § 16:1 : Introduction16-1
- § 16:2 : Definition of Whistleblower16-2
- § 16:3 : Eligibility for an Award16-3
- § 16:3.1 : Voluntary Submission of Information16-4
- § 16:3.2 : Original Information16-4
- [A] : Independent Knowledge or Analysis16-5
- [B] : Exclusions from Independent Knowledge and Analysis16-5
- § 16:3.3 : Additional Eligibility Requirements16-7
- § 16:4 : Incentives to Report Internally16-8
- § 16:5 : Anonymous Reports to the SEC16-9
- § 16:6 : SEC’s Communications with Employees16-9
- § 16:7 : Amount of Award16-10
- § 16:8 : Criteria for Determining Amount of Award16-10
- § 16:8.1 : Factors That May Increase Award Amount16-11
- § 16:8.2 : Factors That May Decrease Award Amount16-12
- § 16:9 : No Amnesty16-13
- § 16:10 : Awards to Whistleblowers Who Engage in Culpable Conduct16-13
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Chapter 17: |
Section 922's Whistleblower Retaliation Protections |
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- § 17:1 : Introduction17-1
- § 17:2 : Procedures and Statute of Limitations17-2
- § 17:2.1 : Federal Court Action17-2
- § 17:2.2 : Statute of Limitations17-3
- § 17:3 : Scope of Protections17-3
- § 17:3.1 : Categories of Protected Reporting17-3
- [A] : District Court Interpretation17-3
- [B] : SEC Final Rule17-5
- § 17:3.2 : “Reasonable Belief” Standard17-6
- § 17:3.3 : “Providing Information” to the SEC17-6
- § 17:3.4 : Interaction with Bounty Provision17-7
- § 17:4 : Remedies17-7
- § 17:5 : Pre-Dispute Arbitration Agreements/Waivers of Claims17-8
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Chapter 18: |
Section 748's Whistleblower Bounty Provisions |
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- § 18:1 : Introduction18-1
- § 18:2 : Definition of Whistleblower18-3
- § 18:3 : Eligibility for an Award18-3
- § 18:3.1 : Voluntary Submission of Information18-4
- § 18:3.2 : Original Information18-5
- [A] : Independent Knowledge or Analysis18-5
- [B] : Exclusions from Independent Knowledge18-5
- § 18:3.3 : Additional Categories of Ineligible Individuals18-7
- § 18:4 : Incentives to Report Internally18-8
- § 18:5 : Anonymous Reports to the CFTC18-9
- § 18:6 : CFTC’s Communications with Employees18-10
- § 18:7 : Amount of Award18-10
- § 18:8 : Criteria for Determining Amount of Award18-11
- § 18:8.1 : Factors That May Increase Award Amount18-11
- § 18:8.2 : Factors That May Decrease Award Amount18-13
- § 18:9 : No Immunity18-14
- § 18:10 : Awards to Whistleblowers Who Engage in Culpable Conduct18-14
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Chapter 19: |
Section 748's Whistleblower Anti-Retaliation Provisions |
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- § 19:1 : Introduction19-1
- § 19:2 : Who Is Covered?19-2
- § 19:3 : Statute of Limitations and Procedures for Enforcement19-3
- § 19:4 : Remedies19-3
- § 19:5 : Pre-Dispute Arbitration Agreements/Waivers of Claims19-3
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Chapter 20: |
Consumer Financial Whistleblower Protections of Section 1057 |
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- § 20:1 : Introduction20-1
- § 20:2 : Covered Employees20-1
- § 20:3 : Protected Activities20-2
- § 20:4 : Claim Procedures20-3
- § 20:5 : Burdens of Proof20-4
- § 20:6 : Remedies20-4
- § 20:7 : Penalty for Frivolous Claims20-5
- § 20:8 : De Novo Review in Federal District Court20-5
- § 20:9 : No Waiver Provision20-5
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Chapter 21: |
Appendix A: Section 806 of the Sarbanes-Oxley Act: 18 U.S.C. Section 1514A, as Amended, and Legistative History |
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Chapter 22: |
Appendix B: Other Selections from the Sarbanes-Oxley Act: Sections 301, 307, 406, and 501 |
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Chapter 23: |
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 |
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Chapter 24: |
Appendix D: 29 C.F.R. Part 18: Rules of Practice and Procedure for Administrative Hearings Before the Office of Administrative Law Judges |
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Chapter 25: |
Appendix E: Federal Whistleblower Statutes |
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Chapter 26: |
Appendix F: State Whistleblower Statutes |
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Chapter 27: |
Appendix G: Excerpts from OSHA Whistleblower Investigations Manual |
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Chapter 28: |
Appendix H: Section 1553 of the American Recovery and Reinvestment Act of 2009 |
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Chapter 29: |
Appendix I: Section 922 of the Dodd-Frank Act: 15 U.S.C. Section 78u-6, and Selections from Legislative History |
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Chapter 30: |
Appendix J: Section 748 of the Dodd-Frank Act: 7 U.S.C. Section 26 |
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Chapter 31: |
Appendix K: Section 1057 of the Dodd-Frank Act: 12 U.S.C. Section 5567 |
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Chapter 32: |
Appendix L: 17 C.F.R. Parts 240 and 249: Securities Whistleblower Incentives and Protections |
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Chapter 33: |
Appendix M: 17 C.F.R. Part 165: Whistleblower Incentives and Protection |
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Chapter 34: |
Table of Authorities |
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Chapter 35: |
Index to Corporate Whistleblowing in the Sarbanes-Oxley/Dodd-Frank Era |
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