Our Blog

Lawson v. FMR: Private Contractors of Public Companies Fall Within SOX Anti-Retaliation Provision

 

Continue reading
  1063 Hits
1063 Hits

Jury Awards Whistleblower Over $25 Million in Sarbanes-Oxley Retaliation Case

In April, a Los Angeles County jury awarded $22.4 million in punitive damages (that was later reduced to $2.27 million) along with $2.7 million in lost past and future wages to Steven Babyak in a whistleblower retaliation and wrongful termination case against Cardiovascular Systems, Inc (CSI). Babyak, a former sales manager for the company, argued that he was retaliated against, culminating in termination, after making complaints about a hostile work environment and violations of the Anti-Kickback Act and securities laws under the Sarbanes-Oxley Act. The

Continue reading
  3160 Hits
3160 Hits

Bio-Rad Whistleblower Protected for “Reasonable” Incorrect Claim

After only three hours of deliberation, a federal jury in San Francisco determined that Bio- Rad, a life science company, retaliated against its former General Counsel, Sanford Wadler, for reporting violations of the Foreign Corrupt Practices Act (FCPA). Wadler alleged he was fired for reporting possible FCPA violations after he found documents showing Bio-Rad’s distribution of free products in China. Wadler was fired from the company in June 2013.

Continue reading
  1005 Hits
1005 Hits

Former Wells Fargo Employee Awarded $5.4 million in Whistleblower Retaliation Lawsuit

The Occupational Health and Safety Administration (OSHA) has ordered Wells Fargo to reinstate and compensate an unnamed, former bank manager who was retaliated against and terminated in 2010 after reporting suspected fraudulent behavior to his superiors as well as through a bank ethics hotline. The whistleblower reported separate incidents of suspected bank, mail, and wire fraud by bankers under his supervision in relation to Wells Fargo’s illegal sales practices going back as far as 2005. As many as 2 million checking and credit card accounts were opened under customers’ names without their permission, a violation for which Wells Fargo paid $185 million as a settlement in September 2016.

Continue reading
  1270 Hits
1270 Hits

Seventh Circuit Permits Whistleblower’s RICO Claims Based on SOX Violation to Go Forward

In an opinion that provides new ammunition for whistleblowers, the U.S. Court of Appeals for the Seventh Circuit permitted Michael DeGuelle’s claim for retaliation under the Racketeer Influenced and Corrupt Organizations Act (RICO) to continue.  According to his Complaint, Mr. DeGuelle had previously blown the whistle internally on tax law violations by his employer S.C. Johnson & Son, Inc., before he filed a claim under the Sarbanes-Oxley Act (SOX) with the Department of Labor.  Subsequent to this filing, Mr. DeGuelle was terminated in apparent retaliation for his SOX filing and whistleblowing activities.  Mr. DeGuelle filed a lawsuit alleging various state and federal claims.  Two of Mr. DeGuelle’s claims alleged that his former employer violated the federal RICO statutes based upon a pattern of racketeering activity, which includes violation of § 1513 of SOX.  Under this section of SOX, it is a crime to “knowlingly, with intent to retaliate, take[] any action harmful to any person, including interference with the lawful employment or livelihood of any person, for providing to a law enforcement officer any truthful information relating to the commission or possible commission of any Federal offense[.]” 18 U.S.C. 1513(e).   The Seventh Circuit stated that “[t]he language of § 1513(e) and logic imply that retaliatory actions always occur after a whistleblower reports others' wrongdoing,” and consequently the retaliation for such whistleblowing could be considered  part of a scheme to prevent disclosure, and thus a proper basis for a RICO claim.  This ruling permits whistleblowers who file a complaint under SOX and are retaliated against to take advantage of the increased damages provisions and attorney fees provisions of the federal RICO statutes.  Current or former employees who have blown the whistle against their employers, or who are contemplating blowing the whistle, should contact Ogborn Mihm LLP immediately to discuss their options.

  1907 Hits
1907 Hits
  • Best Law Firms 2019
  • Primerus
  • Best Law Firms 2018
  • Best Lawyers
  • AV
  • Abota
  • Super Lawers
  • Leaders Forum

Contact Us