Whistleblower Law Blog

AARP Attorneys Join Whistleblower’s Legal Team in Fraud Case Regarding Off-label Marketing of Medical Devices

October 13, 2010

AARP announced in a press release that its attorneys will join the legal team representing whistleblower Kevin Colquitt who reported on the off-label marketing of metal biliary stents wrongfully placed in older patients to treat vascular disease.  According to AARP, “the risky devices are not approved by the Food and Drug Administration (FDA) as safe and effective to treat vascular disease, which involves narrowing of blood vessels in the legs, arms, or kidneys.”  The case is United States ex rel. Kevin N. Colquitt v. Abbott Laboratories et al., Civ. Action No. 3-06-CV-1769 (N.D. Tex.) (Judge Barbara J. Lynn).  For more information about The Employment Law Group® and its Whistleblower Law Practice, click here.

Virginia Bill Would Protect State Employees Who Report Wrongdoing

October 11, 2010

Virginia Delegate Bill Janis filed House Bill No. 1399 for the General Assembly which would protect state employees who report wrongdoing from retaliation by their supervisors.  The Bill was drafted in response to Ligon v. Goochland in which Judge Timothy Sanner, basing his decision on the principle of sovereign immunity, ruled in favor of the county against a whistleblower who was terminated for reporting misdeeds in county shops.

President Obama Signs Bill Eliminating Confidentiality for SEC Investigations Involving Fraud Committed by Publicly-traded Companies

October 07, 2010

President Obama signed into law S.3717, which would repeal provisions in section 929I of the Dodd-Frank Act that grant confidentiality to SEC investigations of fraud committed by publicly-traded companies.  We previously blogged about this Bill here.  For information about The Employment Law Group® law firm’s SEC Whistleblower Practice, click here.

DOL Orders Trucking Company to Reinstate Whistleblower, Awards Back Pay and $125,000 in Punitive Damages

October 06, 2010

The U.S. Department of Labor (DOL) ordered Zurla Trucking of Fort Meyers, Florida to reinstate a truck driver who was terminated for refusing to drive unsafe trucks.  DOL also ordered the company to pay back pay plus interest, compensatory damages, and $125,000 in punitive damages, and required the company to delete “any adverse references related to the discharge from the company’s personnel file.”

The Surface Transportation Assistance Act (STAA) protects bus drivers, truckers, and other employees who blow the whistle about the unsafe operation of commercial motor vehicles.  To learn more about The Employment Law Group® law firm’s Commercial Motor Carrier Whistleblower Practice, click here.

OSC Investigates Whistleblower’s Claims at U.S. Citizenship and Immigration Services

October 05, 2010

According to the Washington Post, the Office of Special Counsel is investigating the claim of Maria Aran, a whistleblower at the U.S. Citizenship and Immigration Services.   Aran complained that one of the Florida offices mishandled hundreds of naturalization and citizenship certificates.  Instead of emailing her complaint to the Office of Security and Integrity, she mistakenly sent her complaint to over 300 agents nationwide.  Following the disclosure, her supervisor attempted to reassign Aran, but Merit Systems Protection Board stepped in stating, “there are reasonable grounds to believe that the agency decided to reassign Ms. Aran because of her protected disclosures.”

For more information about The Employment Law Group® and its Whistleblower Law Practice, click here.

DOL IG Issues Report Criticizing OSHA Whistleblower Program Investigations

October 05, 2010

The U.S. Department of Labor (DOL) Office of Inspector General (IG) issued a report regarding OSHA’s Whistleblower Program concluding that:

• Only 2% of whistleblower complaints were found to have merit by OSHA; and
• Approximately 80% of OSHA investigations did not satisfy one or more of eight elements from the Whistleblower Investigations Manual that are essential to the investigative process.

The IG recommended that “the Assistant Secretary for Occupational Safety and Health (OSHA) implement controls to oversee and monitor investigations and caseloads, develop specific performance measures, update the Whistleblower Investigations Manual, and designate subject matter experts with technical competencies in specific whistleblower statutes.”

For more information about The Employment Law Group® and its Whistleblower Law Practice, click here.

Supreme Court Should Decide FOIA Document Requests Are Not Per Se Public Disclosures under the FCA

October 01, 2010

The Supreme Court has granted certiorari in Schindler Elevator Corp. v. United States ex rel. Kirk, an appeal from the Second Circuit, agreeing to decide whether Freedom of Information Act (FOIA) document requests are per se public disclosures under the False Claims Act (FCA).  The Supreme Court should affirm the Second Circuit’s ruling by holding that the documents requested under FOIA are not per se public disclosures, because:

(1) documents retrieved under FOIA are not per se “Federal reports” or “investigation[s]” or any other enumerated source in the public disclosure bar;
(2) the government is often unaware of the fraud even though the government possesses documents evidencing the fraud;
(3) documents requested under FOIA generally are not known to the public unless the requestor publicizes them;
(4) potential whistleblowers may suspect fraud but be unable to state a claim or assess the merits of their claim without requesting documents under FOIA;
(5) any person who detects fraud unknown to the public without using a source enumerated in the public disclosure bar should be rewarded for coming forward with the information, regardless of who they are;
(6) by definition, an incentive, such as the FCA reward, is intended to leverage opportunism, otherwise a reward would be unnecessary to begin with;
(7) FCA liability requires that the company know or have reason to know about the false claim, punishing claims that are intentional or negligent, not minor transcription errors; and
(8) if a regulation is too burdensome, its utility should be scrutinized in a public forum by the appropriate federal regulator and Congress, ensuring that the regulation is carefully debated and expert testimony is presented, not left to the self-serving discretion of the companies being regulated.

For information about The Employment Law Group® and its False Claims Act Whistleblower Practice.

Novartis and U.S. Attorney’s Office Settle FCA and Criminal Allegations Regarding Trileptal® for $422.5 Million

September 30, 2010

Novartis Pharmaceuticals reached a settlement agreement totaling $422.5 million with the U.S. Attorney’s Office for the Eastern District of Pennsylvania regarding civil allegations under the False Claims Act and criminal allegations under the Food, Drug, and Cosmetic Act relating to its misbranding of Trileptal®.

U.S. OSC Affirms Whistleblower’s Warning that FAA Ignored Violations

September 29, 2010

The U.S. Office of Special Counsel stated in a press release that a Federal Aviation Administration (FAA) safety inspector was correct when blowing the whistle on the FAA’s overlooking of safety violations at Erie Aviation, a repair station operator that services commercial airlines.  The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century, also known as AIR21, protects employees who expose air carrier safety violations.

Senate Unanimously Approves Bill to Repeal Dodd-Frank Provision Granting Confidentially for SEC Investigations

September 23, 2010

The Senate unanimously approved Bill S.3717, which would repeal provisions in section 929I of the Dodd-Frank Act that grant confidentiality to SEC investigations of fraud committed by publicly-traded companies.  Under Section 929I, the SEC cannot be compelled to disclose information provided to the SEC by whistleblowers; however, the SEC must still comply with the information requests made by Congress, Federal agencies, or a court order in an action brought by the United States or SEC.  The new Senate Bill would replace this confidentiality provision with one clarifying that Exemption 8 of the Freedom of Information Act applies to SEC investigations.   Exemption 8 protects matters that are “contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of an agency responsible for the regulation or supervision of financial institutions.”

For information about The Employment Law Group® law firm’s SEC Whistleblower Practice.