Friday, March 2, 2007
Thanks to Richard Moberly (Nebraska) for bringing to my attention a new blog about whistleblowing under Sarbanes-Oxley, The Race to the Bottom. The blog was started recently by Jay Brown at the University of
Richard has a post there on SOX and Whistleblowing: The Concerns, in which he writes:
[In yesterday’s blog], I reviewed the Whistleblowing provisions in SOX. Whether these provisions actually will reduce corporate fraud remains to be seen. Despite the Act’s strong anti-retaliation protections, during the first three years of SOX few whistleblowers actually won retaliation claims. In a recent study I completed of whistleblower claims (a draft can be found here ), only 3.6% of employees won relief through the initial administrative process that adjudicates SOX claims, and only 6.5% of whistleblowers won appeals through the process.
Richard piece, that he refers to above, is entitled: Unfulfilled Expectations: An Empirical Analysis of Why Sarbanes-Oxley Whistleblowers Rarely Win.
I heard Richard present this piece at the Colloquium at Marquette Law this past October and it is an excellent, original piece on this highly relevant area of the law.
Also, check out the Race to the Bottom Blog for other interesting insights from different authors on SOX and whistleblowing.