Image of Why did Congress enact the whistleblower protection provision of the Sarbanes-Oxley Act?

Why did Congress enact the whistleblower protection provision of the Sarbanes-Oxley Act?

Congress enacted the Sarbanes-Oxley Act of 2002’s (“SOX”) whistleblower protection provision to combat a “corporate code of silence,” a code that “discourage[d] employees from reporting fraudulent behavior not only to the proper authorities, such as the Federal Bureau of Investigation and the SEC, but even internally.” S. Rep. No. 107-146, at 4–5 (2002). Responding to the Enron scandal, Congress sought to ensure that whistleblowers could serve as an effective early warning system for companies and help prevent future scandals.

Courageous Enron whistleblower Sherron Watkins blew the whistle to Enron executives and suffered retaliation for her whistleblowing.  Her riveting Congressional testimony helped spur Congress to enact the robust corporate whistleblower protection provision in the Sarbanes Oxley Act.

If you are seeking representation in a Sarbanes-Oxley whistleblower case, click here, or call us at 202-262-8959 to schedule a free preliminary consultation.

Sarbanes Oxley whistleblower law

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Jason Zuckerman, Principal of Zuckerman Law, litigates whistleblower retaliation, qui tam, wrongful discharge, and other employment-related claims. He is rated 10 out of 10 by Avvo, was recognized by Washingtonian magazine as a “Top Whistleblower Lawyer” in 2015 and selected by his peers to be included in The Best Lawyers in America® and in SuperLawyers.