Whistleblowers under Sarbanes-Oxley

A study of almost 1,000 whistleblower complaints filed under Sarbanes-Oxley has found that none has resulted in a “win” for the whistleblower. Section 806 of the Sarbanes-Oxley Act is meant to give protection to employees of public companies who report wrongdoing. It is administered by the Department of Labor’s Occupational Safety and Health Administration (OSHA).

Since its inception, 947 whistleblower cases have been filed. 665 cases were dismissed as having no merit, while 126 were withdrawn by the complainant. 138 were settled before the DOL ruled. Only 17 of the cases were deemed to be with merit by the DOL.

Of the cases that proceeded, only 6 cases survived the DOL’s first level of the appeal process, and none have been before the DOL’s Administrative Review Board, the highest appeal level.

Wow. This will surely make would-be whistleblowers think before they complain about wrongdoing at companies. Why risk one’s job and livelihood, when it is likely that the case will be dismissed or lost?

Related posts:

1. Whistleblower Cases in 2006
2. Whistleblowers, Accounting Fraud, and Internal Investigations (A Case Study)
3. Dodd-Frank Whistleblower Rule Adopted by SEC Discourages Internal Reporting
4. The End of Sarbanes-Oxley?
5. Whistleblower Complaints: Fast Action Required