A federal court in Pennsylvania recently ruled that counterclaims against the whistleblower filed by the target of a whistleblower action can survive. The United States District Court for the Eastern District of Pennsylvania, in United States of America ex rel. Lorraine Notorfransesco v. Surgical Monitoring Association, Inc., et al. (Tucker, C.J.) has denied a motion by the whistleblower, Lorraine Notorfransesco, to dismiss counterclaims made by her former employer, Surgical Monitoring Association (“SMA”). While the recent ruling seems to suggest that potential whistleblowers would be dissuaded from “blowing the whistle” for fear of being retaliated, the ruling is not exactly as controversial as it seems.
The SEC has flexed its (new…ish) muscles for the first time, penalizing Paradigm Capital Management Inc. in an enforcement action for retaliation against a whistleblower.
The Dodd-Frank Act prohibits retaliation against whistleblowers, specifically providing that “No employer may discharge, demote, suspend, threaten, harass, directly or indirectly, or in any other manner discriminate against, a whistleblower” because of certain whistleblowing activities. 15 U.S.C. §78u-6(h)(1). The regulations (specifically, 17 C.F.R. §240.21F-2(b)(2)) provide for enforcement in an action brought by the SEC.
US Steps up for Others in Whistleblower Protection
Bus Driver Whistleblower
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by Edward Kang and Michael Chiumento, Clerk
Discovery to be Coordinated in Massive $11 Billion Whistleblower Suit
Discovery should be coordinated in two qui tam cases filed against Education Management Corp., or EDMC, an education company…
U.S. District Judge Terrence McVerry of the Western District of Pennsylvania has ruled that discovery should be coordinated in two qui tam cases filed against Education Management Corp., or EDMC, an education company based out of Pittsburgh. Two former recruiters of the massive campus manager which runs over 100 campuses nationwide allege that EDMC violated the Higher Education Act in using incentives to college recruiters based upon how many students they were able to draw. Continue reading →
by Edward Kang & Michael Chiumento, Clerk
Modern day application of the False Claims Act falls into a variety of fields and categories which all merit usage under their respective terms when applicable. One specific claim that seems to be having its usage expanded is a reverse false claim. Unlike typical false claims where a person can incur liability by receiving a payment… Continue reading →