Whistleblowers

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On October 23, 2015, the U.S. District Court for the Northern District of California largely denied a motion to dismiss a whistleblower retaliation claim brought by a company’s former general counsel, ruling that: (i) the Sarbanes-Oxley Act (“SOX”) and Dodd-Frank anti-retaliation provisions provide for individual liability against board members; and (ii) the Dodd-Frank anti-retaliation provision protects internal whistleblowers (i.e., a whistleblower who did not complain…

United States ex rel. Hartpence v. Kinetic Concepts, Inc., 792 F.3d 1121 (9th Cir. 2015) (en banc)

Steven Hartpence and Geraldine Godecke (“Relators”) alleged in these consolidated qui tam cases that their former employer (Kinetic) had fraudulently claimed reimbursements from Medicare. After the allegations of Medicare fraud were publicly disclosed, Relators each informed the government of the alleged fraud and then filed…

Dep’t of Homeland Sec. v. MacLean, 574 U.S. ___, 135 S. Ct. 913 (2015)

Robert J. MacLean became a federal air marshal for the TSA in 2001. In that role, MacLean was assigned to protect passenger flights from potential hijackings. In July 2003, the Department of Homeland Security issued a confidential advisory about a potential hijacking plot by al Qaeda to be executed by…

Diego v. Pilgrim United Church of Christ, 231 Cal. App. 4th 913 (2014)

Cecilia Diego, the former assistant director of Pilgrim United’s preschool, sued her former employer for retaliation in violation of public policy that resulted from the director’s mistaken belief that Diego had lodged a complaint with the California Department of Social Services, which resulted in an unannounced inspection of the preschool. The…

Ferrick v. Santa Clara Univ., 231 Cal. App. 4th 1337 (2014)

Linda Ferrick, a former senior administrator for Santa Clara University, claimed the termination of her employment resulted from her reporting that her supervisor had engaged in what Ferrick believed to be commercial bribery as part of a “kickback scheme.” The trial court sustained the university’s demurrer and dismissed the lawsuit because Ferrick had…

Yau v. Santa Margarita Ford, Inc., 2014 WL 4198060 (Cal. Ct. App. 2014)

Eddie Yau, a service manager for Santa Margarita Ford, alleged he was terminated after complaining to his general manager and the owner of the Ford dealership that fraudulent warranty repair claims were being submitted to Ford.  Yau alleged that his termination implicated state statutes proscribing theft and fraud.  The trial court…

Lawson v. FMR LLC, 571 U.S. ___, 134 S. Ct. 1158 (2014)

Plaintiffs in this case are former employees of private companies that contract to advise or manage mutual funds (collectively, “FMR”). Both plaintiffs allege that they “blew the whistle” on putative fraud relating to the mutual funds and as a result suffered retaliation from FMR. Plaintiffs filed suit in federal court alleging violations…

$150,000 Sexual Harassment Verdict And $680,000 Fee Award Affirmed
Taylor v. Nabors Drilling USA, LP, 222 Cal. App. 4th 1228 (2014)

Max Taylor worked as a floorhand on an oil rig where he alleged he was harassed by his supervisors who called him “queer,” “fagot [sic],” “homo,” and “gay porn star” and was subjected to other humiliating and harassing conduct, including simulated masturbation…

On January 30, 2014, the California Court of Appeal for the Fifth Appellate District ruled that California State courts have concurrent jurisdiction over retaliation claims under the federal False Claims Act (FCA) in Driscoll v. Superior Court (Spencer). The following addresses the basis for that ruling and its implications.

Background

Radiologist Scott Driscoll worked for physician Todd Spencer and his medical practice, the Todd…

On October 12, 2013, California Governor Jerry Brown signed into law SB 496, which, along with two other new laws (SB 666 and AB 263), expands protections for whistleblowers in California by significantly altering California Labor Code Section 1102.5, California’s general whistleblower statute. The amendments are effective January 1, 2014.

Before it was amended, Section 1102.5 already prohibited employers from retaliating against…