On September 28, 2023, the U.S. District Court for the Southern District of California issued two separate orders in a long-running SOX whistleblower lawsuit. Following a jury trial, the court upheld the jury’s $1.5 million damages award and awarded the plaintiff $2.4 million in attorneys’ fees. Erhart v. BofI
LA Jury Awards Whistleblower $1.5 Million
On February 28, 2019, a Los Angeles jury issued a verdict of $1.5 million in damages to a former employee who alleged his employer retaliated against him for reporting misconduct in violation of the False Claims Act (“FCA”), 31 U.S.C. § 3730(h), the Defense Contractor Whistleblower Protection Act (“DCWPA”), 10
U.S. Department of Labor Appoints Three New Members to the ARB
On January 8, 2019, the DOL announced Secretary Alexander Acosta’s appointment of three new members to the Administrative Review Board (ARB), filling vacancies that had been open for months, and marking the first appointments to the ARB of the Trump Administration.
The ARB issues final agency decisions on behalf of
E.D. Virginia Allows FCA Whistleblower Retaliation Claim To Proceed
On October 23, 2017, the Eastern District of Virginia rejected a motion to dismiss a former employee’s claim for whistleblower retaliation under the False Claims Act (“FCA”). Andrews v. City of Norfolk, No. 2:16-cv-681, 2017 WL 4837707 (E.D. Va. Oct. 23, 2017). The Court ruled on whether the defendants
OSHA Launches “Expedited Case Processing Pilot” For Whistleblower Claims
On August 1, 2016, the U.S. Department of Labor (DOL) launched a new pilot program, titled “Expedited Case Processing Pilot,” in its Western region. Here is the DOL’s press release describing the program. The program enables a complainant filing claims under whistleblower statutes to ask OSHA to cease its investigation and issue findings in an expedited fashion.
9th Circuit Dismisses ERA Whistleblower Retaliation Claim
On February 12, 2016, the Ninth Circuit rejected a former maintenance manger’s whistleblower retaliation claims under the Energy Reorganization Act, 42 U.S.C. § 5851 (“ERA”), concluding that he failed to engage in in a protected activity. Sanders v. Energy Northwest, No. 14-cv-35368.
Petition Urges DOL To Target Contractual Clauses Discouraging Whistleblowing
The Government Accountability Project (GAP) and Zuckerman Law recently petitioned the U.S. Department of Labor (“DOL”) to issue rules and guidance prohibiting “de facto” gag clauses in settlement and severance agreements that dissuade whistleblowers from engaging in protected activities.
New York Times: Bounty Programs Incentivize Wrongdoers to Collect
We have seen a number of substantial whistleblower awards make headlines this year, but a recent article on nytimes.com discusses the potential downsides of government-sponsored bounty programs: rewarding whistleblowers by paying them millions of dollars for information may lead to perverse incentives by allowing wrongdoers to win significant sums of money with little government accountability for the awards.
Seventh Circuit: ARRA Whistleblower Claim Failed Because Complaints Did Not Relate to “ARRA-Covered Funds”
A Seventh Circuit panel recently affirmed dismissal of a whistleblower claim under the American Reinvestment and Recovery Act of 2009 (“ARRA”) where the complaint did not state a claim (for Rule 12(b)(6) purposes) for misuse or mismanagement of ARRA-covered funds. Fuqua v. SVOX AG, Case No. 12-cv-1870 (7th Cir. May 16, 2014).
Sixth Circuit: ERISA’s Whistleblower Provision Doesn’t Protect Giving Information
The Sixth Circuit (in a 2-1 decision) recently held that ERISA Section 510 does not protect unsolicited employee complaints. See Sexton v. Panel Processing, Inc., 2014 U.S. App. LEXIS 8752 (6th Cir. May 9, 2014).