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
Legal Malpractice
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.…
Ninth Circuit Takes Broad View of Protected Activity under the California Whistleblower Protection Act
On October 20, 2022, the Ninth Circuit reversed in part a grant of summary judgment in favor of an employer, finding that the district court misapplied the substantive law of California in holding that Plaintiff’s disclosures to his supervisor and to a third-party contractor did not constitute protected activity under the California Whistleblower Protection Act. Killgore v. Specpro Pro.
OSHA Orders Company to Reinstate Whistleblowers and Orders Payment of Over $800k for Purported SOX Violations
On October 7, 2022, OSHA announced that it had ordered ExxonMobil Corp. to immediately rehire two computational scientists who alleged that they were fired in retaliation for leaking to the media their concerns about improper conduct by the company. In addition to reinstatement, the former employees were also awarded over $800,000 in back-pay, interest and compensatory damages.
Background
In April…
Tenth Circuit Affirms $1 Million Jury Award to Whistleblower
On July 20, 2022, the Tenth Circuit affirmed a $1 million jury award to a former employee who claimed he was demoted in retaliation for reporting that his supervisor instructed him to falsify test results on a program used by the U.S. military. Casias v. Raytheon Co., Nos. 21-1195 and 21-1205 (10th Cir. 2022).
Background
Plaintiff alleged that…
SEC Adopts Amendments to Whistleblower Program Rules
On August 26, 2022, the U.S. Securities and Exchange Commission announced that it had adopted two amendments to its whistleblower program rules proposed earlier this year (see our post here).
The first amendment allows whistleblowers who would have been eligible for an award under another whistleblower program that would not give them as high an award as under the…
First Circuit: FCPA is not a “Rule or Regulation of the SEC” Under SOX Whistleblower Provision
On July 13, 2022, the First Circuit reversed a denial of summary judgment, finding plaintiff could not satisfy his burden of showing he engaged in protected activity under the SOX whistleblower protection provision. Baker v. Smith & Wesson, No. 21-2019 (1st Cir. 2022). The decision affirms that protected activity under SOX is limited to reporting violations of “any…
SEC Announces $17 Million Award to Whistleblower
On July 19, 2022, the SEC announced an award of more than $17 million award to a whistleblower who provided critical information and assistance to the SEC in a covered action and related action. (The order granting the award can be accessed here.) The SEC noted that because the same information provided led to the success of the related…
SEC Proposes Amendments to Whistleblower Program Rules, Which May Lead to More SEC Tips
On February 10, 2022, the U.S. Securities and Exchange Commission announced two proposed amendments to its whistleblower program rules.
As we previously reported here, a closely divided SEC adopted a final rule implementing several changes to its whistleblower program in September 2020. On January 13, 2021, a whistleblower attorney filed a lawsuit in the U.S. District Court for the…