Imagine this scenario: You are in-house counsel to a public corporation. In the course of your legal work, you discover that your employer—your client—is making materially false statements about the corporation’s financial performance in its soon-to-be-filed annual report. You have reported the problem up the issuer’s chain of command and tried to persuade your client to correct the false statements. Can you report your client’s misconduct to the Securities and Exchange Commission, and what will happen if you do so?
via When Can a Corporation’s Lawyer Blow the Whistle? — Corporate Counsel