Internal investigations prove valuable but hold some traps: Executives involved in the incident must exercise caution


The internal investigation has long been a hallmark of the best practices of any company that is confronted with allegations of misconduct.

Unfortunately, it appears that many more businesses will face the need for internal investigations in the future. The economic meltdown, the resulting push for more regulation by Congress and the recent legislative changes to the federal whistleblower statute make it inevitable that more managers and boardrooms will receive reports of misconduct.

Thus it is imperative that business executives undersand the pluses and pitfalls of an internal investigation.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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