WHISTLEBLOWER CLAIMS

SARBANES OXLEY

In July 2002, Congress passed the Sarbanes Oxley Act, 18 U.S.C. § 1513(e). SOX, among other things, protects whistleblowers at publicly held companies.

SOX only applies to companies that are traded on public stock exchanges. If you know of, or have complained about, violations of federal law, including securities fraud, mail fraud, wire fraud, or frauds against the shareholders, and your employer took an adverse action against you (demotion, termination, suspension), you may have a SOX Whistleblower claim.


SOX claims must be filed within 180 days at the United States Department of Labor, Occupational Safety and Health ("OSHA"). They may be litigated before an Administrative Law Judge at OSHA if OSHA finds that there is "reasonable cause" that a violation occurred, or in Federal Court. An employee may be awarded reinstatement, back pay, special damages, and counsel fees under SOX.







If you have complained that a publicly held company has violated federal law, or committed a fraud, and you have suffered adverse consequences because of it, you need to consult an Employment Attorney.


Raymond Nardo, Esq is experienced filing SOX claims at OSHA and in Federal Court.

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New York Whistleblower Laws

 § 740 of the New York Labor Law is a Whistleblower Law. The recently amended law now provides that an employer cannot take any retaliatory, or adverse, action against an employee who discloses, or threatens to disclose, to a supervisor or public body, a practice that the employee reasonably believes is in violation of law, rule or regulation, or a practice that  the employee reasonably believes poses a substantial and specific danger to the public health or safety. 


Threatening to contact, or contacting, United States immigration authorities, or otherwise reporting, or threatening to report, an employee’s suspected citizenship or immigration status constitutes an adverse action.

The law includes employees, former employees, and independent contractors, and expands the statute of limitations for filing a retaliation claim from one year to two years.


The statute only requires only that the employee make “a good faith effort to notify his or her employer,” and there are many situations where such notification may not be required. 


Employees are now allowed a jury trial, and the relief available now includes (1) injunctive relief, (2) reinstatement to the same or an equivalent position, (3) reinstatement of the full fringe benefits and seniority rights, (4) compensation for lost wages and benefits, (5) reasonable costs and attorneys’ fees associated with bringing the action, (6) front pay in lieu of reinstatement, (7) a civil penalty of up to $10,000, and (8) punitive damages where the employee can prove that the violation was willful, malicious, or wanton.


New York also has a Whistleblower Law to protect healthcare employees - § 741 of the Labor Law. The law protects employees who provide health care services, and who have disclosed, or threatened to disclose, to a public body, a policy or practice that the employee in good faith reasonably believes constitutes improper quality of patient care.



To be protected, the employee has to first bring the improper quality of patient care concerns to the attention of a supervisor,  and must give the employer a reasonably opportunity to correct the activity or practice, unless the quality of care concern poses an immediate threat.


The statute of limitations to file a claim under § 741 is 2 years.

Various laws prohibits employers from retaliating against employees who report such activity, or who report activity that they “reasonably believe” is in violation of a law, rule, or regulation or poses a substantial and specific danger to public health or safety. If you believe you have suffered adverse employment actions from being a whistleblower, please contact Employment Attorney Raymond Nardo.

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Qui Tam Whistleblower

President Lincoln signed the Federal False Claims Act, 31 U.S.C §3729 to combat corporate fraud committed against the US government.  In these cases, a "relator" sues on behalf of their employer - the United States Government - and receives an award between 15% and 30% of the total recovery. The relators must first disclose the wrongdoing to the United States government under seal, and the relator must be an original source of the information. 


Qui Tam Action

Qui tam actions, rooted in the Latin phrase qui tam pro domino rege quam pro se ipso in hac parte sequitur, meaning "he who brings the action for the king as well as for himself," represent a powerful legal tool that enables employees to combat fraud and protect the public interest.


Understanding Qui Tam Actions

Qui tam actions, also known as federal whistleblower actions, are derived from the False Claims Act (“FCA”) - a federal law established to combat fraud against the government. These actions empower private individuals, known as “relators,” to sue on behalf of the government when they possess evidence of fraudulent activity, or false claims, made by companies who defraud federal government programs.


The power of qui tam actions lies in their ability to encourage individuals with insider knowledge of fraudulent practices to come forward and expose wrongdoing. Whistleblowers play a vital role in safeguarding taxpayer money and holding unscrupulous companies accountable for their actions.


How Qui Tam Actions Work

   Discovery of Fraud: An employee may become aware of fraudulent activities committed against the federal government, such as submitting false claims, providing substandard goods or services, falsely certifying that work was done, or other deceptive practices. Recognizing the significance of this information, you can consult with an attorney experienced in qui tam cases to evaluate your claim.

   Filing a Complaint: Working together with your attorney, you must file a white paper detailing the fraudulent activities and presenting evidence supporting your claims, with the United States Attorney General and local United States Attorney, followed by a sealed complaint in federal court. The complaint is served on the government, providing them an opportunity to investigate the allegations.

   Government Investigation: Once your complaint is filed, the government will initiate an investigation to assess the validity and extent of the fraud. This investigation typically remains confidential during the sealed period, allowing the government to gather evidence discreetly.

   Government Intervention Decision: After conducting their investigation, the government has the option to intervene in the lawsuit. If they choose to intervene, they assume the primary role in prosecuting the case. If the government decides not to intervene, you, as the whistleblower, have the right to proceed with the lawsuit independently, unless the government moves to dismiss it.

   Litigation: If the case proceeds, the lawsuit becomes unsealed, and the defendant is officially notified of the allegations. Both parties engage in the litigation process, which may involve discovery, depositions, and other legal proceedings. Your attorney will guide you through this phase, advocating for your rights and ensuring the strongest possible case is presented.

   Resolution and Reward: If the lawsuit is successful, the defendant is liable for defrauding the government and required to pay damages. Whistleblowers are entitled to a percentage of the recovered funds, typically ranging from 15% to 30%. This reward serves as an incentive for individuals to step forward and report fraud against the United States government.


The Impact of Qui Tam Actions

Qui tam actions have the potential to expose widespread fraud and recover significant sums of money for the government and the "relator" employee. They act as a deterrent, forcing companies and individuals to think twice before engaging in fraudulent activities, knowing that their actions may be uncovered by vigilant whistleblowers.



If you believe that you know of a fraud against the government, contact Employment Attorney Raymond Nardo. He has represented qui tam whistleblowers and recovered millions of dollars in qui tam settlements.


Employment Attorney Raymond Nardo is experienced in qui tam actions and has recovered millions of dollars in qui tam lawsuits.

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