Legal Question in Business Law in California

Company financial reports

I generate database usage reports that are used by accounting to bill customers (giant telecommincation companies). What I noticed is that, the software adds few millions to the actual customer usage every month. This is a secret that I think only VP of company knows (not even the customer account managers). This has been going on for years and I was wondering how I should handle this. Can I use this against them if they fire me. Do I need a lawyer to report this to SEC?


Asked on 5/12/09, 12:38 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Company financial reports

If the system is used to overbill federal or state agencies, there is a law that provides substantial cash bounties for people who expose false claims against government agencies. The bounty amounts can run into the millions, but you have to approach the case the correct way. To answer your other questions, yes, you could use this in an employment lawsuit. I would avoid reporting to SEC or other regulatory or police agency until you can sit down with a lawyer and see if there is money in the case for you.

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Answered on 5/12/09, 12:57 pm
Terry A. Nelson Nelson & Lawless

Re: Company financial reports

No, you can't "use it against them" without risking charges of extortion, if you're thinking of trying to threaten them into paying you or doing something. However, if you report it to authorities and/or the company like a good upstanding citizen, then suffer any form of retaliation against you, you would have a claim of 'whistleblower retaliation'. If so, contact me to discuss your rights and remedies.

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Answered on 5/12/09, 1:09 pm


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