Silicon Valley the Next Whistleblower Hot Spot
Most of the time, people assume that whistleblowers come from the medical field or Wall Street. But, there is a huge number of new whistleblowers coming forward in a new area of the business world. A section already riddled with a problematic reputation, Silicon Valley.
Silicon Valley isn’t just comprised of large public tech companies like Google, Facebook, and Apple. However, it mainly comprised of sta, tups at various stages along with venture capital firms. These all fall under the protection of the Securities and Exchange Commission.
Silicon Valley Whistleblowers & SEC
Silicon Valley businesses aren’t above the same violations seen in other sectors. In fact, there can be more room for illegal activities. For instance, it is very tempting for startups tech companies to lie on corporate disclosures and financials. This is an area, which already represents a significant portion of whistleblower tips received by the SEC.
The tips are already beginning. Just this year a former employee of social networking company called Snap filed a whistleblower lawsuit. She claimed that the company lied about its user metrics ahead of its initial public offering in March. User-metrics are imperative when it comes to valuing a startup. This means that many companies will go to great illegal lengths to alter disclosure and financial forms.
Silicon Valley’s Illegal Activity
Just like what was seen for decades in Wall Street, Silicon Valley has a culture of silence. In the past, when a whistleblower spoke out, the industry would blacklist or retaliate the whistleblower. Many of these professionals spent many years acquiring the skills needed to break into the small Silicon Valley community. However, it is imperative for whistleblowers to still come forward. Those inside these tech companies are the only ones who fully understand the complicated funding structures.
Just this year, a whistleblower at a Silicon Valley investment firm went to the SEC and exposed his boss, using investment money to fund other projects he owned. The investors never agreed to use their money in these endeavors. A plaintiff who invested $2 million with the firm alleges the boss used the money to overall support his lavish lifestyle.
Silicon Valley Whistleblower Incentives
The SEC Whistleblower Program prides itself on offering employment protections. Therefore, the organization also allows a whistleblower the ability to report anonymously. Also, there is a lucrative financial incentive. Eligible whistleblowers can receive up to 30% of the monetary sanctions collected in an enforcement action. The SEC recognizes that anyone, not just employees can become a whistleblower. Nearly everyone is eligible for protections and rewards.
Get Whistleblower Help
The Michael Brady Lynch Firm has successfully represented thousands of consumers and recovered millions of dollars for their clients. Our team of attorneys has been recognized as some of the most experienced and successful in the country. Our award-winning staff is also sought after for our knowledge on complex litigation, scientific evidence development, negotiation strategies and trial tactics.
Most of all, our law office is resourceful and dedicated. We will pursue any compensation. Because of this, we have received a high degree of peer recognition and professional achievement, such as inclusion on numerous Plaintiff Steering Committees. We will take whatever legal measures are necessary when fighting for your rights to damages.
Therefore, if you believe you have uncovered evidence of fraud involving a government-funded program, contact us today. Our attorneys have represented many clients in the past with complex cases. We will work tirelessly to obtain results on your behalf.