Whistleblower Law Blog

The Employment Law Group® Law Firm Helps DC Whistleblower Expose Improper Road Contracts

In an article titled “Ex-Official Sues Over Dismissal in Road Contract Case” The Washington Post reports about Employment Law Group client Stephen Amos’ whistleblower retaliation lawsuit against DDOT Director Emeka Moneme and Interim Attorney General Peter Nickles.  Mr. Amos, a former DDOT employee, was terminated because he exposed improper city road contracts between Fort Myer Construction Company and Peake Construction which allowed Fort Myer to fraudulently qualify for federal funds.  The Employment Law Group® Law Firm is representing Mr. Amos in a retaliation action under the D.C. Whistleblower Protection Act and Section 1983.

 

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Principals of The Employment Law Group® Law Firm Publish Article on Sarbanes-Oxley Retaliation Claims

In this week’s Legal Times, Employment Law Group Principals Scott Oswald and Jason Zuckerman discuss recent appellate decisions concerning the scope of protected activity under Sarbanes-Oxley’s whistle-blower protection provision.  To read the article, click here.

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Medtronic Settles False Claims Act Suit for $75 Million

Last week, Medtronic agreed to pay $75 million to resolve allegations of Medicare fraud.  The suit, originally brought under the qui tam provisions of the False Claims Act, alleged that Kyphon, a Medtronic subsidiary, defrauded Medicare by improperly persuading hospitals to keep patients overnight for simple outpatient procedures to repair small fissures of the spine.   This fraudulent conduct resulted in Medicare reimbursing hospitals up to $10,000 per procedure when patients were recovering within a few hours, leading to losses of millions of dollars for the Medicare program.  The two whistleblowers who exposed the fraud will receive a total of $14.9 million as their relators’ share of the settlement proceeds. 

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The Employment Law Group® Law Firm is Quoted in Article on Whistleblower Retaliation Cases

Principal Jason Zuckerman of the The Employment Law Group® Law Firm is quoted in an article in BNA’s Daily Labor Report titled “Whistleblower Retaliation Cases Increase; Law Still Developing,” about recent decisions concerning the whistleblower retaliation provision of the Sarbanes-Oxley Act.  Zuckerman was a panelist at a May 19, 2008 seminar on whistleblower retaliation law, at which Zuckerman discussed new laws protecting whistleblowers in the financial services, defense contracting and transportation industries, and the scope of protected conduct under various whistleblower retaliation laws, including the False Claims Act.
 

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Sixth Circuit Reverses Dismissal of False Claims Act Retaliation Claim

On May 13, 2008, the Sixth Circuit reversed a lower court’s dismissal of a False Claims Act (“FCA”) retaliation claim.  In the U.S. ex rel. Marlar v. BWXT Y-12, LLC, No. 07-6051 (6th Cir. May 13, 2008) opinion, the Sixth Circuit rejected the district court’s narrow interpretation of the scope of protected conduct under the False Claims Act, holding that a plaintiff need not demonstrate that her disclosures clearly alerted management that she intended to pursue a qui tam action.

The district court held that Marlar did not engage in protected conduct under the retaliation provision of the False Claims Act in that her disclosures did not alert her former employer that she intended to bring a qui tam action.  The Sixth Circuit reversed, holding that Marlar’s disclosures to management about BWXT receiving “illegal” “large incentive payments” under its contract with DOE “would have given [the defendant] reason to believe that she was contemplating a qui tam action,” and therefore she could prove that she engaged in protected conduct.

 

 

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House Passes Legislation to Curb Contractor Fraud

On April 23, 2008, the House passed Congresswoman Maloney’s bill, H.R. 3033 (“Contractors and Federal Spending Accountability Act”) with a voice vote, to put a stop to contractors defrauding the government.  This legislature requires the Administrator of General Services to establish and maintain a database of contractor violations of federal procurement laws.  Currently, the Project on Government Oversight (POGO), a nonprofit organization that investigates fraud and abuse in all federal agencies, maintains a database of contractor misconduct, which is available here.  The companion bill in the Senate is S. 2905.  To date, the Senate has read the companion bill twice and has referred to the Committee on Homeland Security and Governmental Affairs. 

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cyberFEDS Quotes The Employment Law Group® Law Firm About Federal Whistleblower Protections

Jason Zuckerman, a principal of  The Employment Law Group® law firm is quoted in an article titled “Fallout from FBI investigation intensifies call for reform at OSC.”  In the article, Zuckerman offers suggestions for improving the effectiveness of Office of Special Counsel, including:

• Providing additional resources to enable OSC to investigate the thousands of whistleblower disclosures it receives from federal employees each year.
• Creating an independent panel to investigate the causes of OSC’s non-compliance with their statutory duties and making recommendations to reform OSC.
• Increasing transparency by requiring OSC to report on the findings of its investigations, as required by 5 USC 1214 (e). 

The Employment Law Group® law firm routinely represents federal employees in whistleblower retaliation actions and discrimination actions against federal agencies. 

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The Employment Law Group® Law Firm Briefs Congressional Members and Staff About Whistleblower Protections

On Monday, May 12, 2008, Principal Jason Zuckerman of The Employment Law Group® law firm briefed Congressional members and staff, whistleblowers, NGOs, and the public about corporate whistleblower protections, including H.R. 4047, which would close loopholes in existing federal whistleblower protection statutes and protect employees who disclose threats to public health and safety, financial fraud, insurance fraud, or violations of environmental protection laws, food and drug safety laws, or transportation safety laws. A section-by-section analysis of the legislation from the Education and Workforce Subcommittee is available here.  This briefing is part of a series of events and conferences aimed at raising awareness of whistleblower issues in Washington, D.C.

 

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The Employment Law Group® Law Firm Will Speak at Program on Litigating Whistleblower Retaliation Cases

Principal Jason Zuckerman of The Employment Law Group® law firm will speak at a May 19, 2008 panel titled “Litigating Whistleblower Retaliation Cases.”  The program, which is sponsored by the District of Columbia Bar Labor and Employment Law Section, will offer an overview of the whistleblower retaliation statutes that are adjudicated before DOL, including the whistleblower provision of the Sarbanes-Oxley Act and new whistleblower provisions for transportation employees.  Practitioners on both the employer and employee side will offer practical tips on representing clients at all phases of whistleblower retaliation cases.

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The Employment Law Group® Law Firm Obtains $1 Million Verdict in Sexual Harrasment Case

ROCKVILLE, MD — 02/29/08 — A jury in the Circuit Court of Montgomery County, Maryland yesterday rendered a verdict of $1 million in a re-trial against Mile One – Herb Gordon – Tischer – Atlantic Automotive for having a sexually hostile work environment in the case Sterling v. Atlantic Automotive Corporation.

While working for Tischer Subaru as a service advisor from May 2001 to March 2002, Gail Sterling was subjected to sexual harassment by her supervisor, Jay Sponseller. Judge Nelson W. Rupp, Jr. presided over the three-day trial.  Mrs. Sterling was represented by R. Scott Oswald and Adam Augustine Carter of The Employment Law Group®  law firm in Washington, D.C.  Atlantic Automotive was represented by Craig Ballew and Tracey McLauchlin of the Baltimore firm, Ferguson, Schetelich & Ballew, P.A.

In 2004, Mrs. Sterling won a jury verdict of $195,000 on this same claim which was reduced to $100,000 by the original trial judge Michael Mason. He also awarded an additional $350,500 in attorneys’ fees and costs against Atlantic Automotive, who appealed that verdict and won a retrial for a single defective jury instruction.

“This verdict is a tremendous vindication of the abuse suffered by Gail Sterling at the Mile One car dealership in Silver Spring. It sends a strong message to employers that they can be held responsible for failing to protect employees from ongoing harassment,” said Mr. Carter. “The jury’s compensation took into consideration the emotional distress that Gail Sterling suffered when her supervisor preyed upon her, and the failure of her employer who kept the supervisor in a position to continue his pattern of abuse even after she filed a complaint.”

“We are so pleased for our client, and especially proud of the way she has continued to fight all these years for a workplace that is free of discrimination,” said Mr. Oswald. “We are privileged to represent such a courageous woman.”

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