Stephen Cohen, Associate Director in the Securities and Exchange Commission’s (SEC) Enforcement Division, recently advised companies being investigated to flaunt their compliance programs to the agency, according to an article in the Wall Street Journal (subscription required). More specifically, while speaking on a panel at the 2013 Corporate Whistleblowing Forum, Mr. Cohen suggested that companies would benefit during investigations if they demonstrate a strong internal compliance program and a culture of compliance and ethics. Officials from the Justice Department and Commodity Futures Trading Commission, who also spoke on the panel, agreed and reiterated that companies may garner goodwill if they are forthcoming with information and proactive when problems arise.
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Since launching our Whistleblower Defense Blog in November 2012, we have committed to becoming a go-to resource for timely and insightful content regarding critical legal developments in the whistleblower arena, and to provide practical guidance for tackling whistleblower issues in advance of and during litigation. Our coverage has ranged from
DoL (Yes, The DoL!) Pays Big Settlement In Whistleblower Case
Earlier this month, the U.S. Department of Labor (DoL) settled a whistleblower claim brought by Robert Whitmore, a former DoL recordkeeping official, for $820,000. Mr. Whitmore alleged that he complained that the DoL failed to adequately monitor and enforce its record-keeping requirements—thereby affording employers the opportunity to under-report on-the-job injuries and illnesses—and was discharged as a result of his complaint.
Second Circuit “Clarifies” SOX Burden-Shifting Framework
On March 5, 2013, the U.S. Court of Appeals for the Second Circuit “clarified” the burden-shifting framework for whistleblower claims brought under Section 806 of the Sarbanes-Oxley Act of 2002 (“SOX”), 18 U.S.C. § 1514A.[1] This blog posting summarizes the standard articulated in the decision.
Employers Taking Stand Against Allegedly Frivolous Whistleblower Claims
Employers who believe they have been subjected to frivolous whistleblower suits are starting to say “enough is enough,” and searching for ways to vindicate their rights and send a strong message. This case is illustrative and caught our eye. Kentucky employer Armstrong Coal (the Company) recently filed suit in Kentucky state court against former employee Reuben Shemwell, a miner, alleging that he abused the legal process by filing an unmeritorious whistleblower claim. Armstrong Coal Co., Inc. v. Reuben Shemwell, No. 12 Cl 397 (Muhlenberg County Circuit Court, Kentucky).
Proskauer’s Whistleblower & Retaliation Practice Group Welcomes Connie Bertram
Proskauer has added leading Washington, D.C. employment litigator Connie N. Bertram as a Partner in its Washington, DC office, and she will serve as co-head of our preeminent whistleblower team. Her deep experience and success in the whistleblower space broadens our approach to effectively defending sensitive whistleblower claims and conducting
Jury Awards $960,000 In First Trial Under New Mexico Whistleblower Law
On January 18, 2013, a former New Mexico Public Regulation Commission (PRC) employee prevailed in the first case to reach trial under the state’s Whistleblower Protection Act (NMWPA). Feliciano v. New Mexico Public Regulation Commission, et al., No. D-101-cv-2010-02008 (First Judicial District Court, State of New Mexico, County of Santa Fe). A jury awarded Aaron Feliciano, a former compliance director of PRC, $355,345 in damages and approximately $250,000 in legal fees. The NMWPA provides for double damages, so Feliciano will receive a total award of approximately $960,000.