If you know of an inadequate disclosure or corporate cover-up that would be material to investors, a corporate disclosure whistleblower lawyer can help you submit your tip to the SEC and potentially collect a significant monetary reward.
Publicly traded businesses are legally required to disclose any material information that could affect how investors view their stock. If a company fails to do so, they could be in very deep trouble with the Securities and Exchange Commission (SEC).
This is why the SEC rewards whistleblowers who have information regarding inadequate corporate disclosures. Not every tip will be strong enough to be acted on by the SEC, which is why it’s critical to go through a corporate disclosure whistleblower lawyer from Meissner Associates. We can confidentially evaluate your information to determine whether the SEC would be likely to take action against the company in question and pay you a financial reward.
What Makes a Corporate Disclosure Inadequate?
It sounds simple: If a company withholds information that could affect the value of its stock, then it’s in violation of federal law. In reality, these situations are rarely so obvious. The SEC is most likely to be interested in whistleblower tips regarding cases where the information being withheld from investors will almost certainly affect the company’s stock price.
For example, if a company covers up a corporate scandal where it settled potential litigation out of court for millions of dollars, then that information would likely be material to investors. However, if the company’s earnings are in the billions of dollars, then it could be argued that the settlement was negligible and not material at all. This is why it’s so important to have your information evaluated by a corporate disclosure whistleblower lawyer so that you can be confident that your tip will be acted on.
Recognizing Improper Corporate Disclosures
Detailed below are a few examples of potential inadequate corporate disclosures and why investors need to be aware of them in order to make informed decisions:
- Inaccurate Financial Reports – When a company publishes a financial report that makes it look healthier than it actually is, investors will be more willing to purchase its stock. These individuals stand to lose thousands to millions of dollars if that company then goes under.
- Undisclosed Scandals – Whether it involves sexual harassment, blackmail, or some other type of misconduct, corporate scandals need to be fully disclosed when they could affect a company’s decision making or their public perception.
- Undisclosed Conflicts of Interest – If a company or its personnel possess opposing interests in a venture, investors need to be made aware as this could affect the company’s decisions and performance.
- Undisclosed Hackings – Whether the company had inadequate cybersecurity or lost consumer information to a hacking, it must be fully disclosed so that the people affected can take steps to protect themselves.
- Deceptive Accounting Practices – The use of Non-GAAP measures needs to be fully explained in comparison to the most directly comparable GAAP measure. If the Non-GAAP measures are in place to hide deceptive accounting practices, the SEC needs to be made aware of it.
Rewards for Blowing the Whistle on Inadequate Corporate Disclosures
If you have knowledge of information that has not been disclosed to investors that would be material to their decision to buy or sell a company’s stock, you may have information that is of interest to the SEC. By submitting a tip with the help of a corporate disclosure whistleblower lawyer from our firm, you can remain anonymous and potentially receive millions of dollars from the SEC as a reward.
The SEC is only interested in information that they are not already aware of, so you need to act quickly before someone else with similar knowledge can blow the whistle. As long as you provide your information voluntarily and the resulting investigation imposes sanctions in excess of $1,000,000, you will receive an award worth between 10 and 30 percent of whatever the SEC collects.
Making the decision to become a corporate disclosure whistleblower is not an easy one, but doing so can protect hundreds of investors and reward you with enough money to ensure your future wellbeing for years to come.
Legal Protections for Corporate Disclosure Whistleblowers
The SEC knows that a financial reward isn’t always enough to convince potential whistleblowers to come forward: There’s more at stake for you than just money. Because of that, whistleblowers are afforded substantial legal protections under both the Sarbanes-Oxley and Dodd-Frank Acts.
If you reveal material information to the SEC that a company was unwilling to disclose to investors, you cannot be retaliated against as a result of the SEC investigation and sanctions. Your employer cannot harass, threaten, demote, or fire you for rightfully choosing to blow the whistle on an inadequate corporate disclosure.
However, these protections only apply if your information meets the criteria set forth in Sarbanes Oxley and Dodd-Frank. As mentioned, it’s not always clear when a potential disclosure is material to investors. By submitting a confidential tip for review by a corporate disclosure whistleblower lawyer, you can be both anonymous and confident that your information will be looked into by the SEC.
Corporate Disclosure Whistleblower FAQ
Choosing to blow the whistle on a corporate cover-up isn’t an easy choice to make. Even when there’s no doubt that investors need to be made aware of what’s happened, there can be any number of factors that cause you to hesitate. We’ve addressed some of the most common concerns here, but if you would like more information, please contact our office so that you can speak with a knowledgeable corporate disclosure whistleblower lawyer.
Can I submit information about an inadequate disclosure to the SEC if I’m not a corporate insider?
Yes; Dodd-Frank expanded whistleblower protections to corporate outsiders and employees of affiliate companies and subsidiaries. Even if you don’t have direct knowledge of material information but have instead discovered it through independent analysis, you can still submit a tip to the SEC and be rewarded.
Can I be a whistleblower if I’m the company’s compliance officer?
Yes, but only under certain conditions. Compliance personnel can become whistleblowers when they believe there is risk of substantial injury to investor or company interests, the company is impeding an investigation of the misconduct, 120 days have passed since the information was properly internally disclosed, or if it appears that the company officers were already aware of the misconduct.
Can I submit a tip if the SEC is already investigating the inadequate disclosure?
Yes, but your tip will need to supply new information that extends the scope of the investigation, allows the SEC to close the investigation sooner while expending fewer resources, or allows the SEC to bring claims against additional parties that weren’t included in the investigation’s original scope.
Work with an Inadequate Disclosure Whistleblower Lawyer
When you work with Meissner Associates, you’re working with a law firm that has been helping whistleblowers expose corporate misconduct since 2001. You’ll receive personal attention, and the tip you submit for evaluation will remain fully confidential.
Don’t delay. Find out if what you know could result in an award worth millions of dollars. To receive help from a corporate disclosure whistleblower lawyer, simply complete the confidential tip submission form below or give our office a call at 1-866-764-3100.