Avoiding the Latest Potential Liability: Whistleblower Complaints
Under the Sarbanes-Oxley Act, complaints made by whistleblowers (persons who maintain and act upon a subjectively- and objectively-reasonable belief of corporate wrongdoing) represent a very significant potential source of civil and criminal liability.
A company can minimize such risk by taking the few important actions suggested by the authors of "Whistleblowing Claims Under Sarbanes-Oxley":
1. Publish to all employees policies and procedures intended to govern the reporting of alleged wrongdoing.
2. Train employees in these policies and procedures. (Document the training.)
3. Develop independent "channels" for employees to report alleged wrongdoing.
4. Conduct thorough but discrete investigations of alleged wrongdoing using independent personnel.
5. Counsel personnel on appropriate conduct.
5. Document, document, document.
