CCCP False Claims Act & Whistleblower Laws 5

Question 1

Under the Sarbanes-Oxley Act whistleblower provision (18 U.S.C. § 1514A), which employees are protected from retaliation?

Accepted Answer

Employees of publicly traded companies and their contractors who report securities law violations

Answer

SOX § 1514A protects employees of publicly traded companies and their subsidiaries or contractors who report violations of securities laws or SEC rules.

Question 2

A company discovers that a former employee has filed a sealed qui tam complaint. What is the company legally prohibited from doing?

Accepted Answer

Taking retaliatory action against the employee for filing the complaint

Answer

The FCA's anti-retaliation provision prohibits adverse employment actions because an employee engaged in protected activity, including filing a qui tam complaint.

Question 3

In False Claims Act cases, what is the purpose of the 'government's share' versus the 'relator's share' distinction?

Accepted Answer

The government retains 70-75% of proceeds when it intervenes; the relator receives 15-25%

Answer

When the government intervenes, it retains most of the recovery (roughly 75-80%) while the relator typically receives 15-25%; if the government declines, the relator may receive 25-30%.

Question 4

Which whistleblower statute has a SOX-style process where the initial complaint must be filed with OSHA before proceeding to federal court?

Accepted Answer

The Energy Reorganization Act whistleblower provision

Answer

The ERA whistleblower provision requires initial administrative filing with OSHA before a complainant can bring a case in federal district court.

Question 5

A qui tam relator's complaint is filed under seal. During the seal period, what is the government required to do?

Accepted Answer

Investigate the allegations and decide whether to intervene

Answer

During the seal period, typically 60 days (often extended), the DOJ investigates the allegations to decide whether to intervene and take over the prosecution.

(CCCP) Certified Corporate Compliance Professional Practice Test

(CCCP) Certified Corporate Compliance Professional Practice Test

CCCP False Claims Act & Whistleblower Laws 5