Sarbanes-Oxley Duties For a Sarbanes-Oxley Lawyer

An experienced Sarbanes Oxley attorney will be able to handle all aspects of the SOX act case. These may include Conflicts of interest, Duties to the institution, and Protection of the whistleblower. A successful SOX act case can result in monetary damages to the employee and reinstatement to his or her former position. Additionally, a successful SOX act case could also result in litigation costs and attorney fees.

Conflicts of interest

One of the main concerns of the Sarbanes-Oxley Act is conflicts of interest for a Sarbanes-Oxley lawyer. In addition to providing legal counsel, a lawyer can also benefit from other professions. For example, securities analysts can make buy and sell recommendations on company stock or bonds. Investment bankers are often the ones providing companies with loans and handling mergers. These interests can make a lawyer appear to have a conflict of interest, but the law does not require a lawyer to be biased.

The Sarbanes-Oxley Act has many new duties for attorneys and companies. Because these changes will cascade throughout the legal profession, states are likely to pass their versions. Already, thirteen states have passed their versions of the Act. Lawyers should understand these new duties before a crisis occurs. This way, they can avoid conflicts of interest that could put their clients in danger of losing their jobs.

Duties to institution

When a corporation or other entity hires a lawyer to represent it, he or she owes a duty to the institution or an individual within the organization. Critics of Sarbanes-Oxley argue that such a system violates the lawyer-client relationship and contradicts well-established ethical principles. Such a system would also be unworkable on a day-to-day basis.

The Sarbanes-Oxley Act of 2002 establishes stringent financial and auditing regulations for public companies. It requires these companies to make certain disclosures and recordkeeping records. The law also requires auditing and internal controls to ensure the accuracy of financial reports. There are also stiff penalties for non-compliance. The law was passed in response to multiple corporate scandals, including Enron Corp., the largest company in the United States at the time.

Duty to make further inquiry

The Sarbanes-Oxley Act imposes several new duties on attorneys and companies alike. Many of these obligations will cascade – thirteen states have passed their version of the Act already. Understanding these new duties is important before a crisis occurs. Here are some tips to make your hiring decision go as smoothly as possible:

First, the duty to make a further inquiry is the duty of lawyers to investigate potential misconduct on their clients’ behalf. The duty to make a further inquiry is based on Rule 8.4(h), which prohibits attorneys from engaging in conduct that adversely reflects their fitness as lawyers. This rule has been applied to the case of a lawyer who was hired to investigate a potential material violation of securities laws.

Duty to protect whistleblower

If you’re a whistleblower, the Sarbanes-Oxley Act protects you from retaliation if your employer violates the law. Although it is difficult to report apparent fraud to a company, it can have serious consequences for you professionally and personally. To get the legal help you need, visit the NWC’s Find an Attorney page and submit a confidential intake form.

Often, employees of publicly-traded companies become aware of questionable workplace practices and are unsure of what to do about it. Most employees feel compelled to report these concerns to upper management, but worry that they will face retaliation if their findings are ignored. Unfortunately, some companies are desperate to keep their dealings secret and resort to job retaliation as a way to silence their whistleblowers. Fortunately, Congress enacted the Sarbanes-Oxley Act in 2002.

A Sarbanes-Oxley attorney who protects a whistleblower must understand the Act’s provisions regarding the duty of a Sarbanes-Oxly attorney to protect a whistleblower. Whistleblower protection is part of a broad package of Act obligations that companies cannot ignore. The Act protects employees who raise concerns with supervisors or management about potentially illegal activities. However, employers must protect their whistleblowers from litigation and adverse publicity if they want to avoid penalties or get a fair dismissal.