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87 B.U. L. Rev. 91 (2007)
Beyond Protection: Invigorating Incentives for Sarbanes-Oxley Corporate and Securities Fraud Whistleblowers

handle is hein.journals/bulr87 and id is 101 raw text is: BEYOND PROTECTION: INVIGORATING INCENTIVES FOR SARBANES-OXLEY CORPORATE AND SECURITIES FRAUD WHISTLEBLOWERS GEOFFREY CHRISTOPHER RAPP' IN TRO DUCTION .............................................................................................. 92 I. THE EVOLVING ROLE OF PRIVATE ACTORS IN SECURITIES L ITIG A TIO N .......................................................................................... 100 A . The M ilberg-Basic Era ................................................................ 101 B . The PSLRA-Enron Era ................................................................ 103 C . The SO X E ra ................................................................................ 107 II. THE INADEQUACY OF SOX'S PROTECTIONS AND CURRENT SEC BOUNTIES IN CREATING INCENTIVES FOR WHISTLEBLOWERS TO REVEAL M AJOR FRAUDS ..................................................................... 111 A. Existing Incentives To Blow the Whistle ...................................... 114 1. Incentives for Whistleblowing Under SOX ........................... 114 2. SE C B ounties ........................................................................ 117 B . D isincentives ................................................................................ 118 1. Loss of Employment Even with SOX Anti-Retaliation P rovision s .............................................................................. 119 2. Fear of Social O stracism ....................................................... 120 3. Psychological Strain .............................................................. 122 4. B lacklisting ............................................................................ 124 5. Contractual Commitments and Fiduciary Duties .................. 125 C. Inside Versus Outside Whistleblowing ........................................ 126 III. QuI TAM BOUNTIES IN THE FCA CONTEXT: A SENSIBLE P RE C ED EN T ......................................................................................... 126 IV. ADOPTING Qul TAM BOUNTIES FOR SOX WHISTLEBLOWERS: ISSUES AND O PTION S ........................................................................... 134 A . Current State Law Options .......................................................... 139 B. Statutory Proposals: Issues and Options ..................................... 143 1. Previous Proposals ................................................................. 143 2. Fair Funds Am endm ents ........................................................ 147 C. Social Security Trust Fund Diversification ................................. 149 D. Asymmetric Insider Trading Liberalization ................................. 151 * Assistant Professor, University of Toledo College of Law; A.B. (Economics), Harvard College; J.D., Yale Law School. Thanks to my colleagues Howard Friedman, Bill Richman, Bruce Campbell, Dan Steinbock, Susan Martyn, Llew Gibbons, Jim Tierney, Beth Eisler, Rebecca Zietlow, John Barrett, Ben Davis, Joe Slater, and Bob Hopperton for their comments. Richard Moberly of the University of Nebraska School of Law provided excellent feedback. Finally, thanks to Lois Patek for her tireless administrative assistance. All errors are my own.

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