At any company, there’s a possibility of a lawsuit. When something goes wrong, your company might be the ones held responsible for the incident, putting you and your fellow employees in an uncomfortable spot. Worse, while the case may even have already settled, you’re concerned about the way your employer is handling things.
Now, you might be expecting of your company covering up a lawsuit? You may not understand why, or you may simply be unsure on how to proceed. When this happens, you may need to consider taking your tip to the SEC. If your employer is engaging in illegal activity, you’ll need to know who to tell and what to do next.
When is Corporate Disclosure Not Enough?
When your company is involved in questionable business practices, understanding when they’re violating expectation is vital. You’ll need to know when to call in your tip, but when is your company acting inappropriately?
Typically, corporations must disclose any necessary information to the public, especially if that information would affect investors or stock values. If they choose to hold back this information, they’ve failed to disclose all information necessary, which is illegal.
This failure to disclose can come from a number of sources. For example, they may have published a financial report that is simply inaccurate. They want their investors to think they’re doing well and continue investing, after all.
They may also simply leave out major events within the company. That may be a hacking incident, a scandal like sexual harassment, or a conflict of interest. Any of these could affect their investors, so they’re required to disclose it.
What Can I Do About It?
Because you’re an employee of the company, you have insider access to the company. That’s a position that the Securities and Exchange Commission, or the SEC, can use. Your employer is engaging in illegal activity, and they should be held accountable for it. Fortunately, your position can help the SEC hold them accountable.
If you believe your company is covering up a lawsuit, for example, you’ll need to bring your tip to a corporate disclosure whistleblower attorney. They’ll review your tip then help you prepare the details that you’ll need to submit as well.
Awards for Whistleblowers
Even so, many people don’t like the idea of opposing their employer for no reason. After all, that’s how they get their paychecks, and they need that support for themselves and their families. Fortunately, you should have some protection and award for your actions.
For example, companies aren’t allowed to retaliate against you, and if you’re concerned about retaliation, you may be able to submit your tip anonymously. You’ll need a lawyer for an anonymous tip, but it can protect your safety and privacy.
Potentially, if your tip is useful, you might receive a monetary award for your help, not just the sense of a job well done. The SEC may give you 10 to 30 percent of the sanctions imposed on the company. For you, that could mean a million dollars or more.
Get Help with Your Tip
When you believe your company is engaging in illegal behavior, someone needs to step in and ensure they’re doing the right thing. So, when you believe that your company is covering up a lawsuit, reach out for help becoming a whistleblower.
While you might have some concerns about becoming a whistleblower, acting now can help prevent further illegal activity from your company. That protects you, their potential investors, and those hurt by their refusal to disclose important information.
If you’re concerned about their illegal activities, reach out for a whistleblower attorney. They’ll help you prepare your tip and get the award you deserve.