One of the best things about representing individuals and families in actions against corporations is knowing that our efforts have led to safer business policies and practices. For instance, following our eight-figure jury verdict against a chemical sealer manufacturer involving a home explosion, our attorneys consulted with several competitor chemical companies about changing their product design and warning labels to make their products safer, and avoid future explosions (and liability).
Study Shows Whistleblowers Curb Corporate Misconduct
A new study from the University of Iowa suggest that the same can be said for whistleblowers. As reported by the New York Times, the study demonstrates that corporate misconduct is curbed after whistleblowers — employees or people with intimate knowledge of corporate wrongdoing — come forward with information about the misconduct.
Federal regulators often find it difficult, if not impossible, to detect whether a company is doing something wrong. The law recognizes that corporate insiders are best positioned to identify corporate misconduct.
Whistleblowers often fear retaliation for disclosing corporate misconduct, and that fear is not unwarranted. However, the Sarbanes-Oxley law, which was enacted following the major accounting frauds at Enron and other major companies, gave new protections to employees who provide evidence of corporate fraud to the government, by allowing them to seek criminal penalties for retaliation against them.
For a free and confidential conversation with one of our attorneys, call Passen & Powell at 312-527-4500.