The United States Supreme Court recently ruled that private contractors are entitled to federal whistle-blower protection when they expose fraud at public companies. Its decision expanded protection to whistle-blowers covered by the anti-fraud law passed after the downfall of Enron, ruling outside lawyers, auditors, and accountants cannot be punished or fired for exposing fraud.
The case in which the Supreme Court ruled involved two employees of a firm that performed research for the Fidelity family of mutual funds. They exposed overstating expenses within the funds. Both employees claimed to have been reprimanded and terminated for exposing this fraud. The employees sued the under the Sarbannes-Oxley Act and lost when an appeals court ruled that the law’s protection for whistle blowers did not cover outside advisers and accountants, only employees of public firms.
The whistle-blower provisions in the Sarbannes-Oxley Act protect individuals that reveal frauds from retaliation, as well as allow the individuals to receive a portion of the money that is recovered if a fraud is exposed.
The attorneys at Florin Roebig recognize the importance of individuals who come forward as whistle-blowers and expose fraud. Call Florin Roebig for a consultation at (727) 786-5000 or submit information about your case on our Contact page.