Monthly Archives: September 2016
House Passes Office of Special Counsel Reauthorization Bill
The U.S. House of Representatives unanimously passed a law providing reauthorization of the Office of Special Counsel (OSC) for the next five years, while also expanding the agency’s investigative powers. The bill clarifies the OSC’s ability to receive organizational information related to whistleblower claims and expands the agency’s annual reporting mandates to provide better information […]
Wells Fargo Scandal Could Lead to Major Whistleblower Liability for Businesses
Americans have been shocked by news reports about false accounts at Wells Fargo Bank, which led to $185 million in fines and the firing of 5,300 employees. With such widespread misconduct, it is natural to ask whether workers attempted to report the illegal behavior to supervisors. Many former employees have come forward to declare that […]
Critics Call OSHA Whistleblower Initiative a ‘Shaming Program’
Business leaders across a wide range of industries are criticizing a new Occupational Safety and Health Administration (OSHA) program that “shames” employers who have allegedly violated their workers’ whistleblower rights. The Whistleblower-Severe Violator Enforcement Program (W-SVEP) would target businesses and organizations that egregiously impede on their employees’ ability to file whistleblower complaints, especially when it […]
Texas Agency Seeks Dismissal of Employee’s Claims
The Texas Department of Aging and Disability Services (DADS) wants the state Supreme Court to disallow a former employee to bring a lawsuit against the agency for failing to accommodate his prostate cancer treatments. In a May ruling, the Texas First Court of Appeals denied psychologist David Donaldson’s claims that he was discriminated against due […]
3 Major Retailers Won’t Face False Claims Act Suit
Three of the world’s largest retailers have avoided a potential False Claim Act lawsuit, after claims surfaced that Wal-Mart Stores Inc., Kmart Corp. and Rite Aid Corp. had charged the federal Medicare and Medicaid programs for expired or almost-expired prescription medications. U.S. District Court for Massachusetts Judge Patti Saris dismissed nearly all of the qui […]
Is the SEC Relying Less on Businesses’ Self-Policing?
A notable increase in the number of whistleblower awards the U.S. Securities and Exchange Commission (SEC) has given out this year has led many legal analysts to conclude that the agency is no longer leaning on companies to self-report potential wrongdoing. In June alone, the agency granted more than $17 million to a single whistleblower, […]
What Affect Does the Yates Memo Have on Internal Investigations?
In September 2015, Deputy Attorney General Sally Yates released a memo that served as a guidance to U.S. Department of Justice attorneys related to the emphasis they should place on individuals’ accountability when it comes to corporate investigations. In the memo, Yates directs U.S. attorneys to place equal or greater focus on the individual as […]
Medical Device Maker Agrees to $8 Million Settlement in FCA Violation Case
Cardiovascular Services Inc., a Minneapolis-based manufacturer of a heart surgery device, will pay $8 million to settle a case in which it was accused of violating False Claim Act regulations. The company was accused of providing kickbacks — in the form of marketing support — to physicians who charged the government for their use of […]
Temporary Injunction Issued on Department of Labor ‘Persuader Rule’
A U.S. District Court judge in the Northern District of Texas has placed a temporary hold on a key Department of Labor rule regarding employers’ ability to influence union matters. In late June, the judge handed down an 86-page order that granted a preliminary injunction against the DOL’s “persuader rule,” which business groups have aggressively […]
Merrill Lynch to Pay Large Fine, Admit to SEC Rules Violations
In late June, Merrill Lynch, Pierce, Fenner & Smith Inc. and Merrill Lynch Professional Clearing Corp. agreed to wrongdoing and a fine of $415 million to settle charges involving violations of Consumer Protection and Exchange Act rules. Rule violations at issue At issue in the case was Merrill Lynch’s alleged violation of Exchange Act Rule 15c3-3, […]
