Amplifying and Protecting the Voices of Whistleblowers
Have you witnessed shady practices that didn’t seem quite right, especially when it comes to companies and their finances? If so, you might have valuable information that could make a significant difference.
When serious misconduct takes place, such as investment fraud or insider trading, it’s often whistleblowers who help bring these injustices to light. An SEC whistleblower claim is a way for people to report these wrongdoings to the Securities and Exchange Commission (SEC), the watchdog that keeps our financial markets fair and honest.
By stepping forward, you’re not just doing the right thing—you could also be rewarded for your bravery. However, you don’t have to face the stress and uncertainty alone. The Lyon Firm has nearly two decades of experience.
Our job is to guide you through the whistleblower process while protecting your rights and privacy. We’ll make sure your crucial information reaches the SEC in a way that is confidential and safe. Reach out to us online or call (513) 381-2333 to learn how our attorneys can help you.
Understanding the Importance of Whistleblowing
Whistleblowing is the act of reporting wrongdoing or illegal activities within an organization. In a business context, it means letting the authorities know about serious issues, such as fraud or regulatory violations.
Whistleblowers provide crucial information that can uncover hidden problems and ensure that ethical standards are upheld.
Whistleblowers are essential for keeping financial markets transparent and fair. They help expose misconduct and assist regulators in addressing these issues.
This not only helps protect individual investors but also contributes to the overall integrity of the market. Without whistleblowers, many issues might remain concealed, potentially leading to unfair practices and financial harm.
Dissecting the Role of the SEC
The SEC stands for the Securities and Exchange Commission. Established in 1934, its primary mission is to protect investors, maintain fair and efficient markets, and facilitate capital formation in the United States.
It oversees the activities of stock exchanges, brokerage firms, investment advisors, and other entities involved in securities transactions. By doing so, it aims to protect investors and maintain fair and orderly market conditions.
The SEC enforces laws that require companies to provide honest and accurate information about their financial status, allowing investors to make informed decisions. If it finds that a company is breaking these rules, the SEC will take action against violators.
SEC Data Breach Reporting Requirements
On July 26, 2023, the SEC introduced new rules requiring companies to disclose material cybersecurity incidents and provide annual reports on their cybersecurity risk management.
Companies must now report any significant cybersecurity events within four business days using Form 8-K, detailing the incidents:
- Nature
- Scope
- Timing
- Impact
Additionally, per the SEC data breach notification requirements, they must include comprehensive information on their cybersecurity strategies, risk management, and board oversight in their annual reports.
ABOUT THE LYON FIRM
Joseph Lyon has 17 years of experience representing individuals in complex litigation matters. He has represented individuals in every state against many of the largest companies in the world.
The Firm focuses on single-event civil cases and class actions involving corporate neglect & fraud, toxic exposure, product defects & recalls, medical malpractice, and invasion of privacy.
NO COST UNLESS WE WIN
The Firm offers contingency fees, advancing all costs of the litigation, and accepting the full financial risk, allowing our clients full access to the legal system while reducing the financial stress while they focus on their healthcare and financial needs.
“Mr. Lyon assisted our family with an employment dispute issue. He was extremely professional, responsive and achieved a result that exceeded our expectations. I have continued to use him for my own business needs.”
- Client: Christopher Bollman
Who Qualifies as an SEC Whistleblower?
Anyone who provides the SEC with information about a possible violation of federal security laws may be able to work with an SEC whistleblower attorney. This includes:
- Current and former employees of companies
- Contractors
- Victim of an investment scheme
- People who witnessed misconduct indirectly
To be eligible, the information must be original, meaning it has to be new and not previously disclosed to the SEC. Furthermore, you must provide this information voluntarily. You will not be able to receive a monetary award if the SEC requests the information from you.
That said, you don’t have to take this on alone. An SEC whistleblower lawyer will help you prepare your claim to improve the chances of the SEC accepting it while also shielding you from any retaliatory practices.
Ready to make a difference while potentially earning an award? Don’t let worries over retaliation hold you back from holding fraudulent companies accountable.
An SEC whistleblower lawyer will help you make a powerful impact and present your case so your voice is heard while safeguarding you from any sort of job loss or professional repercussions. Contact The Lyon Firm today online or call (513) 381-2333 to discuss your potential SEC claim.
What Kind of Violations Is the SEC Looking For?
The SEC doesn’t accept just any case. Instead, the organization specifically seeks out significant violations that have a major impact on the financial market and investors.
It prioritizes cases where the wrongdoing involves serious breaches of federal security regulations, such as:
- Insider training
- Bribery of foreign officials
- Large-scale accounting manipulations
- Fraud in buying or selling investments
- Failing to report cybersecurity incidents in the appropriate timeframe
- Manipulating rates and prices
How Can An SEC Whistleblower Attorney Help Me?
If you’re considering submitting a whistleblower claim to the SEC, it’s recommended that you work with a lawyer, as they will have helpful insights and knowledge to give your claim a leg up.
Presenting a weak or under-researched case to the SEC can seriously hurt your chances of possibly securing a monetary award for coming forward because the organization may not even bother giving your claim the time of day.
A team of lawyers familiar with the SEC’s decision-making and processes can conduct an in-depth investigation and work toward building the strongest possible claim worthy of being submitted to the SEC.
Also, a lawyer can help you weigh the risks and benefits of your particular claim, so you have the full picture of what the SEC whistleblower claims process will entail, keeping you from being blindsided or trudging through the claim on your own.
“Whistleblowers are unsung heroes when it comes to keeping a level playing field and stopping companies from engaging in harmful and fraudulent practices. That’s why our team wants to help those who bravely come forward to expose these critical issues.”
Joe Lyon,
Founding Partner of the Lyon Firm
What Kind of Compensation Is Available?
It’s important to note that there is no guaranteed reward amount when submitting a whistleblower claim.
However, whistleblowers who voluntarily provide the SEC with original, timely, and credible information that results in a successful enforcement action may be eligible for a financial award.
These awards can range between 10% and 30% of the total monetary penalties collected if the sanctions exceed $1 million. Examples of awards recovered by SEC whistleblowers include:
- In 2024, the SEC awarded over $98 million to two whistleblowers: $82 million to the first for initiating and assisting with investigations leading to enforcement actions, and $16 million to the second for significantly contributing to the proceedings.
- A whistleblower received over $37 million for their persistent internal reporting and substantial assistance, which led to a successful enforcement action and helped uncover the full extent of the employer’s misconduct.
This variation is due to factors such as the significance of the information provided, the level of assistance given throughout the investigation, and the overall value of the enforcement action.
However, working with experienced SEC whistleblower attorneys can boost your chances of securing a financial award. A legal team that has worked on SEC whistleblower claims in the past will help you navigate the reporting process, ensure your information is presented effectively, and protect your privacy and anonymity.
Why Hire The Lyon Firm: An Experienced SEC Whistleblower Law Firm
Choosing to report wrongdoings and misconduct can be daunting. At The Lyon Firm, we recognize the courage it requires to come forward. Our SEC whistleblower attorneys will address your fears and concerns, making sure you feel confident in reporting to the SEC.
Our firm boasts nearly two decades of experience standing by whistleblowers under a variety of circumstances, including:
The Lyon Firm has represented thousands of people throughout all fifty states, securing millions in compensation for our clients. Reach out to us online or call (513) 381-2333 to learn how an SEC whistleblower attorney at our firm will have your back and walk you through each step in a whistleblowing claim.