Sarbanes–Oxley Act and Corporate Fraud
Generally, the Sarbanes–Oxley Act of 2002 (SOx) was enacted to reduce agency costs in public companies. It provides rules for nominating directors, that auditors must be independent, stock ownership reports be electronically filed, and other things designed to prevent corporate fraud. SOx also prohibits public companies from retaliating against employees for reporting instances of corporate fraud. More specifically, Section 806 of SOx prohibits officers, employees, agents, and contractors/subcontractors of publicly traded companies from firing, threatening, harassing, demoting, or otherwise discriminating against whistleblowers. If the action is successful, a whistleblower can recover compensatory damages including back pay with interest, reinstatement with the same seniority status, and special damages like litigation costs.
Before and since Congress enacted SOx, we have seen considerable corporate fraud in publicly–traded companies. SOx was ultimately enacted in response to corporate scandals involving Enron and WorldCom, Inc. Enron, one of the most successful companies in America at the time, filed for bankruptcy after significantly overstating earnings and entering into sham transactions to preserve its tax position. WorldCom, Inc. was the subject of a high–profile criminal prosecution and filed for bankruptcy after it too overstated profits. Many other business scandals and corporate failures have occurred in recent years. There has been a crisis at Adelphia Communications Co. involving hidden debt, an overstated revenue scandal at Tyco, fraud within Qwest Communications involving insider trading and improper booking of some funds as profits instead of investments, and more. This corporate fraud can be extremely devastating to people, and corporate misconduct should be reported.
Speak with Experienced Massachusetts Whistleblower Lawyers at 617.492.3000 or 800.481.6199
If you have spoken out against corporate fraud or other illegal activity and have suffered adverse employment consequences as a result, you might have a Sarbanes Oxley Act or other whistleblower claim against your employer. You should speak with an experienced attorney who can tell you whether you qualify as a whistleblower under the law, whether the acts taken against you amount to illegal retaliation, and more. At the Greater Boston Law Firm of Altman & Altman LLP, our lawyers have many years of experience and can help guide you through this difficult and complicated process.
With offices in Boston and Cambridge, the Greater Boston whistleblower law firm of Altman & Altman represents clients from all over New England. As local whistleblower lawyers, we have the ability to travel to you to speak with you face to face about your claim. We will meet with you at your convenience and are available during off hours – including nights and weekends. Our team of experienced whistleblower attorneys understands the enormous amount of pressure facing those coming forward with these types of claims. With this pressure in mind, our attorneys will field all of your legal questions and will stand by your side throughout the entire process.
If you have knowledge of an act of fraud being committed against the government, you may be entitled to percentage of the government’s financial recovery through a Whistleblower Lawsuit. Please contact the law firm of Altman & Altman to schedule a Free Confidential Initial Consultation with one of our skilled whistleblower attorneys. Our phones are answered 24 hours a day, 7 days a week. In addition, all emails sent to the firm receive an immediate response.
Call Altman & Altman LLP, toll–free, at 617.492.3000 or 800.481.6199 or contact us online. We are available 24 hours a day and 7 days a week. All information that you provide will be kept absolutely confidential.