Inside The Whistleblower Process – How Long Cases Take And What To Expect

Deciding the blow the whistle against misconduct or illegal activities that take place within an organization can be difficult. But it would be rewarding if you could take that courageous step. Still, the process ahead of you will be filled with uncertainty. Here’s a look at what whistleblowers can expect after filing a complaint and how long these complex cases usually take.

Initial Filing and Review

The first step for any whistleblower is filing their complaint with the appropriate regulatory body or government agency. For example, if the misconduct involves securities fraud, the complaint would be filed with the Securities and Exchange Commission (SEC). Employment discrimination cases would go to the Equal Employment Opportunity Commission (EEOC).

Whichever agency receives the initial complaint will review it to determine if the allegations made merit opening an investigation. At the SEC, experienced attorneys in the Office of the Whistleblower carefully assess each complaint for credibility and specificity before deciding if it should move forward. Importantly, by law the SEC cannot reveal any information about complaints deemed to have potential merit. This protects the confidentiality of the whistleblower.

Time Frame: The initial review process can take anywhere from a few weeks to several months depending on the complexity of the case and the agency workload.

Commencing the Investigation

Once deemed credible with solid evidence of misconduct or violations, the relevant regulatory agency will open an investigation. The process followed from this point can vary based on the nature of the case.

For instance, an SEC investigation focuses on determining whether violations of securities laws have actually occurred. Attorneys will begin formally collecting evidence and documentation. They may subpoena witnesses for interviews or testimony and require the submission of related records. Most SEC investigations take between 6 months to 2 years to complete. Especially complex cases involving extensive evidence review can sometimes take even longer.

Meanwhile, the EEOC follows specific steps laid out in federal anti-discrimination laws when investigating workplace discrimination complaints. The employer accused of discrimination must submit a position statement in response to the allegations before attempts at reaching a voluntary settlement out of court are pursued.

The EEOC can close a case in just a few months through early mediation or if no violation is found. Cases involving drawn out investigations and settlement negotiations which result in lawsuits may drag on for years before final resolution.

Time Frame: Investigations vary widely but 1-3 years from initiation to conclusion is typical for many regulatory agency whistleblower cases.

Concluding the Case

After thoroughly investigating the whistleblower’s allegations, the regulatory agency must decide which course of action to take next.

For the SEC, if the evidence confirms securities laws were broken, they may impose fines or other civil penalties. They can also refer more egregious cases to the Department of Justice for criminal prosecution. Even if no direct action results, the investigation itself can lead the accused party to implement changes addressing the issues raised by the whistleblower.

Meanwhile, if the EEOC finds clear discrimination, voluntary settlements are again attempted before the agency considers filing suit on behalf of the complainant. If a satisfactory agreement cannot be reached, then litigation may ensue with the whistleblower as plaintiff, aided by the EEOC.

Time Frame: A few months to 2+ years is typical to resolve cases after investigations end through settlement agreements or official judgments.

The Rewards Process

For whistleblowers reporting securities laws violations to the SEC, there exists the possibility of being awarded a financial bounty through their whistleblower program. The amount is dictated by various factors such as the monetary worth of fines collected based on the case. Awards can range from 10% to 30% of sanctions exceeding $1 million.

However, waiting to actually receive this reward after qualifying can add even more time to the lengthy whistleblower process. Per program rules, the SEC cannot pay out awards until related criminal cases, appeals, and collections of fines all wrap up. As a result, years can pass before rewards money lands in the pockets of eligible SEC whistleblowers depending on each case circumstances.

Braving the Process is Worth It

Blowing the whistle often sparks a difficult journey filled with uncertainty. This is why you need to have a whistleblower lawyer by your side when going ahead with the case. It can help you to experience relief and have someone to support you at any given time during the case.