Whistleblower Law Blog

Voices for Corporate Responsibility Kicks Off

December 16, 2009

On December 15, 2009, The Employment Law Group® law firm participated in the launch of Voices for Corporate Responsibility (Voices).  Voices is a project sponsored by Grant & Eisenhofer P.A., Mehri & Skalet, PLLC, and The Employment Law Group® law firm.  Its mission is to help and encourage corporate employees to take a stand against corporate wrongdoing and irresponsibility.  The project aims to facilitate participation in legislative and regulatory reform and provide a networking environment for those who have been injured as a result of wrongful conduct.

Among the speakers at the event were David E. Welch and Jon Oberg.  Dr. Welch is the first whistleblower to win a case before an Administrative Law Judge under the Sarbanes-Oxley whistleblower provision.  The Employment Law Group® law firm wrote an amicus curiae brief in support of Dr. Welch. Dr. Oberg is a TELG client currently bringing suit against several student lending companies seeking the return of $1 billion in “special allowances” wrongfully extracted from the United States Department of Education.

TELG Associate Quoted by The Raleigh News & Observer

December 10, 2009

Tom Harrington, an associate at The Employment Law Group® law firm, was quoted in a December 3, 2009 article published by The Raleigh News & Observer.  The article, “Tony Rand accused of insider trading,” discusses accusations of insider trading by Paul Feldman, the former President of Law Enforcement Associates.  Mr. Feldman claims he was unlawfully terminated after leading LEA for more than 19 years.  He has filed an administrative complaint with the Department of Labor alleging LEA fired him because he disclosed information to federal authorities, and participated in investigations by federal authorities, about conduct by LEA that violated rules of the Securities and Exchange Commission, federal laws, rules and regulations relating to securities fraud and fraud against shareholders, and various other federal laws.  His insider trading allegations implicate as many as 50 North Carolina politicians.  North Carolina state senator Tony Rand, chairman of LEA’s board, recently announced that he will step down from his position as Senate Majority Leader. 

Mr. Feldman is represented by The Employment Law Group® law firm.  To learn more about the firm’s Whistleblower Practice, click here. 

TELG Client Wins Right to Pursue Case Against CA School District, and Superintendent and Board Member Individually, for Alleged Sec. 1983 and Due Process Violations

December 07, 2009

On November 30, 2009, Judge Jeffrey S. White of the U.S. District Court for the Northern District of California partially denied the defendants’ motion to dismiss in Galli v. Pittsburg Unified School District.  The Court held that an employee’s wrongful termination constitutes an ongoing violation and that reinstatement is prospective injunctive relief from unconstitutional state action.  Accordingly, a request for reinstatement is not barred by the Eleventh Amendment.  The Court also held that since damages sought from Superintendent Barbara Wilson and board member Percy McGee as individuals will not come from public funds, they are not immune from claims that they deprived Mr. Galli of federal rights under the color of state law.  Accordingly, Mr. Galli may proceed against them in their individual capacitates and seek punitive damages. 

This decision is an important victory for public employees.  It shows that it is possible to pierce the veil of immunity surrounding government officials, holding them personally responsible for their violations of individuals’ rights and the law.  Mr. Galli is represented by David Scher, a principal at The Employment Law Group® law firm.  For information on The Employment Law Group® law firm’s Wrongful Discharge Practice, click here. 

Employment Law Group® Law Firm Principal Jason Zuckerman Named as a Top Whistleblower Lawyer

November 24, 2009

The December 2009 Washingtonian magazine’s list of top lawyers in the Washington, D.C. metropolitan area lists Jason Zuckerman, a Principal at The Employment Law Group® law firm, as a top whistleblower lawyer.  To learn more about The Employment Law Group® law firm’s whistleblower practice, click here. 

DoD Strengthens Whistleblower Protections for Employees of Contractors

November 23, 2009

On November 19, 2009, the Department of Defense (DoD) issued an interim rule implementing the whistleblower protection provisions of the National Defense Authorization Acts for Fiscal Years 2008 and 2009.   The rule clarifies the scope of protected conduct, sets forth procedures governing Inspector General investigations, and clarifies the removal provision under which a whistleblower can obtain de novo review in federal district court.

For information on The Employment Law Group® law firm’s Whistleblower Practice, click here.

Health Care Fraud Enforcement Act of 2009 Introduced to Senate Committee

November 02, 2009

On October 28, 2009 the Health Care Fraud Enforcement Act of 2009 (S. 1959) was introduced to the Senate Committee on the Judiciary.  If passed, the bill would aid the government in prosecuting health care fraud and provide stiffer penalties for cases that involve a loss of over $1 million. 

In addition to increasing the criminal penalties, the bill would lower the mens rea requirement of the existing health care fraud statute (18 U.S.C. 1347).  Under this bill “a person need not have actual knowledge of this section or specific intent to commit a violation of this section.”  The purpose of this amendment is to facilitate claims brought against medical facilities under the False Claims Act.  According to the bill’s sponsors, there have been cases where the government was unable to recoup when a hospital was unaware that claims submitted by doctors were false.  This amendment would empower the government to pursue more claims.  The bill also increases the situations in which the Department of Justice can issue subpoenas.

Perhaps most importantly, the bill provides an additional $20 million to the Attorney General each year from 2011 through 2016.  $10 million is to provide for the offices of the United States attorneys, and $5 million each for the Criminal Division of the Department of Justice and Civil Division of the Department of Justice.  Powerful legislation does little without the man power and resources to enforce it.  For information on The Employment Law Group® law firm’s False Claims Act Practice, click here. 

Law360 Quotes The Employment Law Group® Law Firm on Proposed Arbitration Fairness Act of 2009

October 26, 2009

In an article titled, “Congress May Affect Arbitration More Than High Court,” Law360 reports on the Arbitration Fairness Act of 2009 (S. 931, H.R. 1020).  The article discusses the potential broad impact of the legislation and compares it to the possible impact of three Supreme Court cases on the docket for this term.  The Arbitration Fairness Act would prohibit arbitration agreements in certain employment, financial and commercial areas.

Jason Zuckerman, a principal at The Employment Law Group® law firm declared that, “the AFA was needed to restore fairness and rein in employers’ unequal bargaining power.” According to Mr. Zuckerman, “[t]he current economic downturn was caused by corporate fraud and a legal and regulatory environment in which companies were immune from oversight and accountability.  Restoring access to jury trials is fundamental to achieving corporate accountability.”

For information on The Employment Law Group® Law Firm’s Employment Law Practice, click here.

TELG Client Wins over $282,000 Against UDC in Jury Trial

October 26, 2009

On October 22, 2009, a D.C. Superior Court awarded Colin Browne over $282,000 for his former employer’s violations of the D.C. Whistleblower Protection Act (WPA).  This is one of the highest awards under the D.C. WPA to date.  The award comes after a 5 day jury trial.  We first blogged about the verdict in Mr. Browne’s case here.

 Browne was the program coordinator for UDC’s federally funded Career Counseling and Development Center where he worked with UDC’s at-risk students.  He discovered that his supervisors were intentionally misrepresenting the program’s success to secure federal funding.  He took a stand against this fraud and in return he was retaliated against and ultimately fired. 

Regarding the verdict, R. Scott Oswald, Managing Principal with The Employment Law Group® law firm said, “This case is an extraordinary victory for whistleblower protection in the District of Columbia.  I especially wish to acknowledge Mr. Browne who demonstrated tremendous courage and fortitude throughout his tenure at UDC and the course of this litigation.”

For information on The Employment Law Group® law firm’s Whistleblower Practice, click here.

Four Drug Companies Settle False Claims Act Case for $124 Mil.

October 22, 2009

On October 19, 2009, the Department of Justice announced that four pharmaceutical manufacturers, Mylan Pharmaceuticals, UDL Laboratories, AstraZeneca Pharmaceuticals, and Ortho McNeil Pharmaceutical settled claims brought against them under the False Claims Act for $124 million.  The case alleged that the companies misclassified “innovator” drugs as “non-innovator” drugs and underpaid quarterly rebates owed to state Medicaid programs.  The case was brought by Ven-A-Care, a Key West, Florida company who will receive $10,787,392 for their efforts.

A copy of the DoJ press release is available here.  For information on The Employment Law Group® law firm’s False Claims Act Practice, please click here.

ARB Rules that Pilot Engaged in Protected Conduct When He Declared Himself and His Crew Unfit to Fly

October 12, 2009

In Douglas v. Skywest, Inc., the Administrative Review Board (“ARB”) affirmed an Administrative Law Judge’s (“ALJ”) finding that the complainant Don Douglas engaged in protected activity under AIR 21 when he declared himself and his crew unfit to fly, and informed his supervisors on same.  Don Douglas, a 16-year veteran pilot for SkyWest, filed a whistleblower complaint against his employer, alleging that the company retaliated against him when he informed the crew scheduling office that he and his crew were physically incapable of attempting another flight after just a few hours of rest.  SkyWest argued that Douglas did not engage in protected activity because Douglas’s alleged fatigue was not actual but only projected, and AIR 21 does not protect projected future unfitness to fly.  The ALJ rejected SkyWest’s argument, concluding that federal regulations confer “final authority and responsibility” on the pilot in command of the aircraft and thus, Douglas engaged in protected activity when he believed and reported that his crew members were unfit to make the 4:00 am flight.  The ARB affirmed the ALJ’s decision, finding substantial evidence supporting the ALJ’s findings that Douglas genuinely believed that he would be violating air safety regulations if he flew and that his belief was objectively reasonable given the impact of his fatigue on air safety.  For more information on AIR 21, visit The Employment Law Group® law firm’s Airline Whistleblower Practice at https://www.employmentlawgroup.com/what-we-do/whistleblower-protection-rewards/airline-safety-whistleblower-attorney/