A new whistleblower study shows that whistleblowers can help companies be more profitable than corporate scandals. The researchers also provided a detailed response for how companies can provide employees a channel to disclose unethical activity.

The Law Protects and Rewards a Whistleblower

In 1863 to combat fraud in Union contracts during the Civil War, Congress passed the Whistleblower or Qui Tam statute. In 1986, Congress modernized the Whistleblower statute and renamed it, the False Claims Act (FCA). It became the government’s primary tool to combat fraud. Individuals who report government-program fraud bring the lawsuit on behalf of the government.
When a knowledgeable attorney like those found at The Michael Brady Lynch Firm files a False Claims Act lawsuit, he or she files it under a seal. This means it is completely confidential. There is also a full disclosure statement in the suit, which details the evidence collected by a whistleblower.
After we file your suit, the Department of Justice will review the evidence before deciding to step in and decide if they want to prosecute the case. The government’s fraud investigator will work closely with you, the whistleblower to identify all responsible for the fraud.
The government could award you with 15-30% of the funds recovered. In order to receive the reward, you must be the first one to file a case under the False Claims Act. This is why it is key to pick an experienced attorney to work quickly to get your compensation.

Whistleblower Study

The whistleblower study called “Evidence on the Use and Efficacy of Internal Whistleblowing Systems” analyzed over 10 years’ worth of records from NAVEX Global. NAVEX Global monitors whistleblowing and incident reporting for 8,500 companies. The study’s criteria covered a range of categories, including financial reporting, sexual harassment, and workplace safety. These findings discovered that whistleblowers play a key role in cleaning up a company’s financial and corporate culture. Thus making the company more profitable in the long run.
However, the whistleblower study found that many companies either ignore or mishandle internal compliance complaints. Then, they don’t know the proper ways to attend to the information. Yet, the researchers found that the more employees who bring bad corporate practices to the forefront the less likely companies will face legal action. It is important that if a company does not take whistleblower claims seriously that legal remedies are available.