On May 5, 2023, the U.S. District Court for the Northern District of Illinois granted a defendant-employer’s motion for summary judgment on whistleblower retaliation claims, holding that the company demonstrated that it would have terminated Plaintiff’s employment even in the absence of any alleged protected activity due to his refusal to cooperate in the company’s efforts to confirm that he
Legal Malpractice
District of NJ: Federal Courts Lack Jurisdiction to Enforce Preliminary Reinstatement Orders Under SOX
On April 19, 2023, the U.S. District Court for the District of New Jersey granted the defendant-employer’s motion to dismiss a complaint seeking court enforcement of a preliminary reinstatement order after determining that the court lacked jurisdiction to enforce such orders. Gulden v. Exxon Mobil Corp., No. 22-cv-7418.
Background
As we previously reported, on October 7, 2022,…
SEC Announces Record-Shattering $279 Million Award to Whistleblower
On May 5, 2023, the SEC announced an award of nearly $279 million to a whistleblower who provided the SEC with information and assistance that led to the successful enforcement of SEC and related actions. This enormous award is the largest-ever in the history of the whistleblower program and is more than double the previous record $114 million award issued…
Illinois Federal Court Grants Motion to Dismiss SOX Whistleblower Claim
On February 28, 2023, the U.S. District Court for the Central District of Illinois granted a defendant-employer’s motion to dismiss a SOX whistleblower retaliation claim, holding that the plaintiff failed to adequately plead that he engaged in protected activity because his alleged attempt to raise safety concerns did not plausibly allege that he subjectively believed that he was reporting fraud. …
Ohio District Court Grants Employer Summary Judgment on SOX Whistleblower Claims
On February 15, 2023, the U.S. District Court for the Southern District of Ohio granted a defendant-employer’s motion for summary judgment on SOX whistleblower retaliation claims, holding that the plaintiff failed to establish the elements of a SOX claim, and that the company demonstrated that it would have discharged her in the absence of any protected activity. Harmon v. Honeywell…
OSHA Implements Pilot Program to Streamline Complaint Intake Process
OSHA’s new nationwide year-long pilot program that took effect on February 17, 2023, will aim to streamline the whistleblower complaint intake process.
OSHA, which administers over two dozen whistleblower statutes, has seen a rising number of whistleblower complaints filed in recent years. This pilot program aims to relieve the strain on OSHA’s investigative resources by allowing an investigator to administratively…
Third Circuit Affirms Dismissal of Untimely SOX Whistleblower Claims
On January 4, the Third Circuit affirmed the dismissal of a former bank executive’s whistleblower retaliation claims, holding that two procedural errors doomed his case: he sued before exhausting his administrative remedies; and then he belatedly filed an administrative complaint after the statute of limitations had run. Jaludi v. Citigroup, No. 21-cv-1108.
Background
Plaintiff alleged that he was demoted,…
Pennsylvania District Court Grants Employer Summary Judgment on Whistleblower Retaliation Claims
On December 6, 2022, the U.S. District Court for the Eastern District of Pennsylvania granted a defendant-employer’s motion for summary judgment on whistleblower retaliation claims brought under SOX and the Consumer Financial Protection Act of 2010 (“CFPA”). It held that the plaintiff could not prove that her alleged complaints of illegal conduct contributed to the decision to discharge her, and…
Third Circuit: Whistleblowers Are Not Shielded From Discipline for Misconduct
On August 26, 2022, the Third Circuit affirmed a grant of summary judgment in favor of an employer, holding that whistleblower retaliation protections in the False Claims Act did not protect an employee from being discharged for harassing a co-worker. Crosbie v. Highmark Inc., et al., No. 21-1641.
Background
Plaintiff was a fraud investigator for a health insurance…
SEC Releases FY 2022 Whistleblower Annual Report
On November 15, 2022, the SEC’s Office of the Whistleblower (OWB) released its annual report to Congress covering the period from October 1, 2021 to September 30, 2022. The report highlights a record-breaking year for the SEC’s whistleblower bounty program in certain respects, explains factors that can increase or decrease award amounts, and discusses recent amendments to the program’s rules.…