CFO awarded $1.9 million in Sarbanes-Oxley anti-retaliation case

posted on:
November 15, 2016

author:
Andrew Brashier

Earlier this month, Greg Becker was awarded $1.9 million in his Sarbanes-Oxley (SOX) whistleblower anti-retaliation case. Becker, the chief financial officer (CFO) for Rockwood Clinic, was fired for refusing to file false financial reports. The clinic pressured Becker to project the company’s 2012 losses at $4 million instead of $12.8 million, which Becker had estimated. Becker refused to project the losses at $4 million because doing so would violate federal financial reporting laws and mislead investors. Thereafter, he was forced to resign.

Sarbanes-Oxley provides retaliation protection for those blowing the whistle on fraud against shareholders and violations of securities laws. In order to file an anti-retaliation case under Sarbanes-Oxley, the complaint must be filed with the U.S. Department of Labor within 180 days of the adverse action. Under Sarbanes-Oxley, recovery can include: reinstatement, back pay, special damages, and attorney fees. Front pay has also been accepted as a possible remedy under Sarbanes-Oxley in circumstances where reinstatement would not be appropriate.

Becker was awarded front pay, back pay, special damages, and attorney fees. Specifically, the judge awarded Becker $341,380 in back pay and almost $1.5 million in front pay. Becker was also awarded $15,000 for reputation damage, attorney fees, and cost. The $1.9 million awarded demonstrates the significance of the case.

Many whistleblower provisions include anti-retaliation provisions. Where the provision under Sarbanes-Oxley requires the complaint to be filed in 180 days, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) permits whistleblowers to file in federal court within two years of the adverse action. Dodd-Frank also permits the recovery of double back pay, special damages, attorney fees, and reinstatement under the same section.

Are you aware of fraud or securities law violations involving a publicly traded company? If so, there are anti-retaliation provisions that can protect you when reporting the violations. Moreover, many provisions, including the False Claims Act and SEC whistleblower program rewards whistleblowers with a percentage of the overall recovery of any successful government action.

If you have any questions about whether you qualify as a whistleblower, please contact an attorney at Beasley Allen for a free and confidential evaluation of your claim. There is a contact form on this website, or you may email one of the lawyers on our whistleblower litigation team: Archie Grubb, Larry Golston, Lance Gould or Andrew Brashier.

Source: The Spokesman-Review

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