The Chamber of Commerce has commenced a well-financed and aggressive lobbying campaign to undermine America’s most effective whistleblower law, the False Claims Act. To justify its anti-whistleblower campaign the Chamber published a report entitled, “Fixing the False Claims Act: the Case For Compliance-Focused Reforms.” The purpose of this blog series is to combat the Chamber’s misinformation, and explain why the False Claims Act must be protected.
Fact Number 15:
In its comprehensive rulemaking, the Securities and Exchange Commission also evaluated the cost-benefit analysis of “encouraging” internal reporting programs but not “mandating” these programs. The Commission correctly recognized that the competition between internal corporate programs and a well-managed government reward program would strongly encourage companies to institute effective compliance departments. If internal reports became mandatory, the positive pressure caused by competition would be lost.
Continue Reading Mandating Internal Disclosures Would Undermine the Effectiveness of Internal Compliance Programs