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Category: Agency Enforcement

SEC Cease and Desist Order Dings Employer for Trying To Limit Dodd-Frank Bounty Hunter Award

The Securities and Exchange Commission (SEC) has fined privately held energy company Monolith Resources $225,000 for using a severance agreement that allegedly deprived departing employees of the ability to qualify for whistleblower awards under the Dodd-Frank financial reform law. Monolith has agreed to the SEC’s September 8 cease and desist order and has modified its separation agreement to exempt whistleblower...
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Category: Government Contracts

Supreme Court Hones Standard for Establishing False Claims Act Liability

The U.S. Supreme Court has ruled that a company can be liable under the federal False Claims Act (FCA) for making a false claim against the government if the company knew or should have known that the claim was false, even if the claim was objectively reasonable. The decision is United States ex rel. Schutte v. SuperValu, Inc. (June 1,...
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Category: Whistleblowing and Retaliation

Expanding Whistleblower Retaliation Protection for Federal Employees

Before adjourning for this week’s elections, the U.S. House of Representatives passed legislation that would significantly expand whistleblower retaliation protection for employees of the federal government. Although the bill was passed on a partisan vote and has no chance of becoming law this year, it contains several provisions that go beyond current anti-retaliation protections for private sector employees. Accordingly, we...
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Category: Whistleblowing and Retaliation

Second Circuit’s Burden of Proof Ruling in SOX Whistleblower Case Creates Circuit Split

The U.S. Court of Appeals for the Second Circuit recently overturned a jury’s award of $900,000 to a former employee who claimed, in a case brought under the federal Sarbanes-Oxley Act (SOX), that he was unlawfully retaliated against for blowing the whistle on his former employer’s alleged securities violations. According to the appeals court, the trial judge gave the jury...

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