A whistleblower is a person who reports that an organization, usually one the person is a part of, is involved in some form of misconduct. Whistleblower lawsuits can be brought against organizations, including government entities, that violate a law or regulation. Furthermore, there are laws designed to protect whistleblower rights including laws to ensure that a whistleblower is not retaliated against by the organization he or she has reported.
Whistleblower Lawsuits
 Any individual who witnesses corporate wrongdoing can file a complaint or "blow the whistle" to launch a lawsuit and hold the party accountable for its actions. Typically, the whistleblower receives a percentage of the lawsuit settlement funds and federal laws protect whistleblowers from unnecessary retribution such as wrongful termination.
Other whistleblower cases can involve stock/securities fraud, money laundering, health threats, safety violations, malpractice, corporate corruption, and more. Each year, hundreds of whistleblower cases are filed and many are settled for millions of dollars. Whistleblower cases are designed to hold public entities accountable while protecting and compensating the victim(s) and/or the whistleblower.
Stocks and Securities
Stock and securities fraud happens when the issuer of a stock or security makes false claims about that stock or security. A whistleblower may come forward to identify either the stockbroker or the brokerage firm that is engaging in securities fraud.
Health Threats and Safety Violations
 Companies might take part in numerous activities that pose a health threat or safety violation. These include acts such as illegal dumping of waste or illegal storage of toxic materials, which could affect the general public, or improper safety procedures that affect the health of employees. Large-scale whistleblower lawsuits involving health threats include lawsuits against the tobacco industry.
Government/Qui Tam
Qui Tam laws allow whistleblowers to take the place of the government and seek damages on behalf of the government. These laws, adopted by 20 states, also allow whistleblowers who successfully file a qui tam action to receive between 15 percent and 30 percent of the money recovered for the government. The qui tam laws also protect the individual from retaliation for filing or investigating a potential qui tam lawsuit. Such situations might arise when a company overbills the government, evades taxes, commits accounting fraud, falsely bills Medicare or the military or submits other fraudulent invoices to the government.
Malpractice
 Whistleblower malpractice lawsuits can be filed alleging that a professional has committed misconduct. Examples of whistleblower malpractice suits include allegations that doctors performed unnecessary procedures, improperly sterilized their equipment or that administration at hospitals and medical centers ignored complaints of wrongdoing on the part of medical staff.
Corporate Corruption
Whistleblower lawsuits may also involve corporate corruption. Allegations against corporations include anticompetitive practices, failing to pay taxes, lying about debt and other misconduct.
Whistleblower Rights
 There are a number of laws that protect whistleblowers from retaliation for their actions These include the Occupational Safety and Health Act, Sarbanes-Oxley Act, Surface Transportation Act, Toxic Substances Control Act and the Safe Drinking Water Act, to name a few.
Some states have their own laws regarding whistleblowers. For example, New Jersey has the Conscientious Employee Protection Act, to protect employees who report or threaten to report illegal activity on the part of the employer. California has the False Claims Act, which prevents employers from retaliating against employees who have disclosed information to the government.
However, the statute of limitations for whistleblower lawsuits varies, depending on the circumstances. For example, environmental whistleblowers have 30 days to make a written complaint to the Occupational Safety and Health Administration whereas employees may have up to 300 days to file a discrimination case against their employer. Meanwhile, whistleblowers reporting false claims against the federal government may have up to six years to file a civil lawsuit.
Whistleblower Cases
The most noteworthy whistleblower case involved a former FBI official who leaked information about President Richard Nixon's association with Watergate. The informant's identity was kept secret for 30 years until he identified himself in 2005.
In 2001, Vice President of Enron, Sherron Watkins blew the whistle on Enron's major accounting cover-up. The company and its auditors, Arthur Andersen, hid billions of dollars in debt, lied to their shareholders, and avoided paying federal income tax for years.
Depicted in a Hollywood film, The Insider shows the real-life story of how CBS reporters uncovered the malpractice and corruption of the tobacco industry and attempted to push past the corporate politics to have it aired on 60 Minutes.
Other whistleblower cases have involved misconduct in the FBI, the failure of government officials to protect the environment, illegal storage of hazardous waste, dumping of raw sewage and wastewater violations, nuclear accidents, corporate cover-ups, and more. |
WHISTLEBLOWER ARTICLES AND INTERVIEWS
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Montana Deputy Sees Wrongful Termination Verdict Upheld
Billings, MT: A Park County Sheriff's Deputy who successfully filed a wrongful termination lawsuit after being fired for insubordination in 2007 has seen the ruling upheld by the Montana Supreme Cour..
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Vehicle Seized to Pay Whistleblower's Back Wages
Washington, DC: The Whistleblower Protection Act, which forbids retaliation against employees who come forward with a legitimate concern, has recently come to the aid of a New Jersey whistleblower who was fired by his employer. The former employee will finally be paid back wages via the seizure of his former employer's car...
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Radiologist Warns of MRI Health Risks, GE Sues for Libel
London, UK: A few years ago, Henrik Thomsen, one of Europe's leading radiologists, warned his colleagues about nephrogenic systemic fibrosis (NSF), which he called a medical "nightmare." In 2006, it was discovered that NSF was linked to Omniscan, a contrast agent given in advance of MRI scans. Now, GE Healthcare, a subsidiary of General Electric and the manufacturer of Omniscan, is suing Thomsen for libel..
WHISTLEBLOWER EMERGING ISSUES
FAA Signficant Lack of Oversight in Airline Maintenance Whistleblower laws and famous Whistleblower cases.
WHISTLEBLOWER SETTLEMENTS
Alta College Settles False Claims Allegatiions for $7 Million County Corruption Bastrop to pay $187,500 settlement in whistleblower lawsuit. Government Overbilling Defense contractor to pay $8.9 million settlement in fraud lawsuit.
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