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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

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3160 Hits

SpaceX cleared in $6 Million Whistleblower Lawsuit for Wrongful Termination in Violation of Public Policy

On June 7, 2017, a jury decided in favor of Space Exploration Technologies Corp. after an 8 day trial to determine whether Jason Blasdell had been wrongfully terminated in violation of public policy. Blasdell claimed he was fired after raising concerns about SpaceX’s compliance with 18 U.S.C. Section 38, a federal statute prohibiting fraud against a customer involving aircraft or space vehicle parts. The former Avionics Test Technician working on the Falcon 9 rocket and Dragon spacecraft alleged that he had been wrongfully terminated after voicing concerns about the falsification of test results following safety testing and misrepresentations in connection with SpaceX’s multi-billion dollar contracts with customers including NASA. Specifically, Blasdell claimed that managers told him to sign off on parts quality regardless of whether he could verify their compliance with protocol. Blasdell claims he voiced his concerns to management, as far up as SpaceX President Gwen Shotwell and CEO Elon Musk. 

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971 Hits

Supreme Court to Determine Scope of Protected Activity Under Dodd-Frank Act

Attorney Clayton Wire has recently published a blog post on WhistleblowerBlawg.com regarding the Supreme Court’s grant of certiorari in Digital Realty v. Somers, to resolve a circuit split over whether a whistleblower must first report to the SEC before being entitled to protection under the Dodd-Frank Act’s anti-retaliation provision. Click here to read the full post. 

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776 Hits

Protections for Whistleblowers in Colorado

Generally, in Colorado, an employee who is hired for an indefinite amount of time is considered an at-will employee, meaning employment may be terminated by either the employee or the employer with no notice for any reason or no reason at all. However, Colorado has some protections against whistleblower retaliation for employees in both the public and private sectors.

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1668 Hits

Commodity Futures Trading Commission Strengthens Whistleblower Program

On May 22, 2017, the U.S. Commodity Futures Trading Commission (CFTC) adopted amendments to its whistleblower rules, continuing its three-year effort to strengthen the commission’s whistleblower program and its ability to protect whistleblowers from employer retaliation. The amendments expand the commission’s ability to pursue retaliation claims on behalf of whistleblowers and prohibit confidentiality agreements that interfere with whistleblowers’ communications with the CFTC.

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852 Hits

False Claims Act Whistleblowers Protected Even Without a Successful Qui Tam Lawsuit

The False Claims Act contains a newly broadened anti-retaliation provision that protects whistleblowers who take actions in furtherance of a Qui Tam action, or in an attempt to stop one or more violations of the False Claims Act. This essentially means that employees and others are protected when they collect information in preparation for a Qui Tam lawsuit as a relator, and when they internally blow-the-whistle on what they reasonably believe to be violations of the FCA. Importantly, courts have clarified that generally whistleblowers need not be correct in their reasonable belief, in order to be protected from retaliation.

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2025 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.

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1270 Hits

Whistleblower Statutes Administered by OSHA

The Occupational Safety and Health Administration (OSHA) is responsible for investigating and making at least preliminary decisions on a number of whistleblower claims. Many whistleblower statutes have an administrative exhaustion requirement that forces whistleblowers to first file a complaint with OSHA, as a prerequisite to ever filing a lawsuit in federal court. Some whistleblower statutes also only permit a whistleblower to litigate his or her claims through the administrative process, without ever being able to bring a lawsuit in federal court. Consequently, it is imperative that whistleblowers who have suffered retaliation timely file their complaint with OSHA, since failure to file a complaint within the prescribed timelines will forfeit even a meritorious claim.

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940 Hits

Dodd-Frank Act Whistleblower Bounty and Retaliation Claim Basics

In 2010, Congress enacted the Wall Street Reform and Consumer Protection Act, otherwise known as the Dodd-Frank Act, in response to the banking and investment problems that led to the 2008 economic recession. The Dodd-Frank Act was an amendment of the Securities Exchange Act of 1934 and sought to more stringently regulate the U.S. financial industry, specifically large banks and insurance companies, to prevent failures that have major negative effects on the national and global economies.

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947 Hits

Sarbanes-Oxley Act Whistleblower Protection Basics

In an attempt to restore trust in financial markets following the collapse of Enron Corporation, Congress enacted the Sarbanes-Oxley Act in 2002. Often considered one of the most important whistleblower protection laws due to its diverse administrative, criminal and civil provisions, the Sarbanes-Oxley Act contains significant protections for whistleblowers to ensure that employees can safely disclose information which may harm investors, especially fraud. Modeled on whistleblower laws administered by the U.S. Department of Labor and the Whistleblower Protection Act, these protections are not limited to wrongfully discharged employees, but include additional requirements to create a more encompassing protection network and give more responsibility to corporations for managing complaints internally.

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1517 Hits

Federal False Claims Act Basics

Enacted during the Civil War by President Abraham Lincoln and strengthened in 1986, 2009, and 2010, the Federal False Claims Act (FCA) bestows liability on anyone who makes, causes, or conspires to make a false or fraudulent claim to the United States government, including situations in which a person falsely certifies compliance with a condition of payment or recklessly ignores the falsity of claim. Fines under the FCA can range from $5000- $10,000 (adjusted for inflation) in addition to 3 times the amount of damages that the government sustains due to the false claim. The defendant will also be liable for any costs of litigation incurred to recover these damages. The general statute of limitations is 6 years from the date of violation.

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876 Hits
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