When a company learns of possible wrongdoing and is faced with the possibility of litigation or a government investigation, it is almost always in the best interests of the company to gather information to respond effectively to help avoid liability or preventing future claims.
Responding to red flags is an important component of an effective compliance program. An investigation that is prompt, thorough and impartial can help if a lawsuit is filed as a good faith response promotes transparency and compliance. In addition, a fair investigative process can help build morale and trust among employees.
