Search Site
Menu

Two Whistleblower Cases Show Major Contrast of How Cases Can Result

A couple of recent whistleblower cases that have received national attention show the large divide that still exists in the way that these cases can progress. The first case saw the SEC award a whistleblower $400,000 for delivering information about his company’s wrongdoing that he had originally tried to report internally before being ignored by company higher-ups. In the second case, L-3 Communications Holdings fired four workers after it was forced to restate its earnings, which cost the company over a whopping $1 billion in market value. It did so as a response to employee allegations of wrongdoing within the company.

Many experts are saying that these two cases show an outstanding demonstration of the right and wrong ways to respond to allegations of company wrongdoing made by employees.

The first case was particularly interesting. The SEC was not required to provide a reward to the whistleblower, but some believe that it did so to deliver a powerful message to companies about the importance of taking complaints of wrongdoing seriously within their organization. In the past, the SEC has been criticized for telling employees to come to the agency with allegations before making the reports internally, but this award acts as a way for the SEC to show that people are still making internal reports but being ignored.

Despite the major hit to L-3 Communications Holdings, the organization responded the way publicly traded companies must when such allegations arise. While there were negative consequences for the short-term, the organization is much better off in the long run for using appropriate conduct in a whistleblower situation.

While both cases had very different results, they each show the importance of speaking up if you believe that your company is engaging in wrongdoing. Speak with a Dallas lawyer if you are aware of wrongdoing in your company and you are in need of protection before acting as a whistleblower.

Leave a Reply

Your email address will not be published. Required fields are marked *

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra