Rise in whistleblower claims in Dodd-Frank era expected.

• Author: Tansi, Rich
• Position: REGULATION

A majority of corporate executives say they are concerned about potential whistleblower claims, as a result of mandates contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The study, conducted by employment and labor law firm Littler Mendelson in October of a select group of 51 senior legal, compliance and human resources executives at publicly traded or highly-regulated companies, found that 96 percent of those questioned expressed either great concern (27 percent) or moderate concern (69 percent) about potential whistleblower complaints as a result of the Dodd-Frank law.

Nearly three-quarters (73 percent) named whistleblowingand retaliation as emerging risk areas.

"As corporate executives start to see the impact of the new whistleblower rules, they are undoubtedly concerned about the potential risks to their organizations," said Gregory Keating, co-chair of Littler's Whistleblower and Retaliation Practice Group. "However, the legal changes and shift in social consciousness are still relatively new." And he added, "The level of concern is likely to rise in the coming months as companies continue to adapt to the regulatory environment."

Many survey respondents said they expect an increase in the number of whistlehlower claims as the program develops. To date, 45 percent said their companies have been the targets of a whistleblower claim within the previous two years; two-thirds anticipate such a claim to be filed over the next two years.

At the same time, corporate preparation for whistleblower actions may not be where it needs to be...