Dispatches From The Whistleblower Front: Five Common Pitfalls For Companies To Avoid

Originally published in: Securities Regulation & Law Report, 07/22/2013, The Bureau of National Affairs, Inc.

As the Securities and Exchange Commission's whistleblower program continues to build momentum, there is no question that companies are facing increasing numbers of reports of possible misconduct, both through internal reporting mechanisms and through whistleblower complaints and tips filed directly with the SEC. In response to these challenges, many companies strengthened their compliance programs, communicated on a regular basis to employees the importance of raising concerns internally, evaluated the effectiveness of existing training programs and internal reporting mechanisms, and created response teams and procedures to conduct initial assessments of internal reports and complaints, determine whether investigation would be appropriate, and conduct the investigation.¹

^{1 For a detailed discussion of possible strategies that can assist public companies in navigating these turbulent waters, see generally William McLucas et al., SEC Whistleblower Bounties: 10 Things Companies Can Do Right Now to Stay Ahead, MKT. SOLUTIONS, Sept. 2011, at 1; William McLucas, Laura Wertheimer & Arian June, Get Ahead of the Bus or Be Hit by the Bus: Practical Strategies for Meeting the Challenges and Mitigating the Risks of the Dodd-Frank Whistleblower Program, 44 BLOOMBERG BNA SEC. REG. & L. REP. 526 (Mar. 12, 2012); William McLucas, Laura Wertheimer & Arian June, Preparing for the Deluge: How to Respond When Employees Speak Up and Report Possible Compliance Violations, 44 BLOOMBERG BNA SEC. REG. & L. REP. 922 (May 7, 2012).}

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