Former Brokers File $20 Million Lawsuit Against Morgan Stanley

Former Brokers File $20M Lawsuit Against Morgan Stanley

Former Brokers File $20M Lawsuit Against Morgan Stanley


Two former brokers have hit Morgan Stanley with a $20 million lawsuit, alleging they were fired in retaliation for complaining about improper practices and violations of securities law.

Jamie Feldman-Boland and John Boland, who are married, say they witnessed trainees and interns entering trades on behalf of advisors, presumably using brokers’ access codes in violation of firm policy, the web site On Wall Street reports.

The two say they also witnessed an advisor trying to improperly get an insurance commission. They allege a business deal worth $200 million was cancelled to punish Feldman and that another advisor and the branch manager harassed Feldman. Morgan Stanley denies the allegations, On Wall Street reports.

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Hanford Whistleblower to Receive $4.1 Million Settlement

Hanford Whistleblower to Receive $4.1M Settlement

Hanford Whistleblower to Receive $4.1M Settlement


Dr. Walter Tamosaitis has agreed to a $4.1 million settlement of his federal whistleblower retaliation lawsuit against the Hanford nuclear facility about a year before the case was scheduled to go to trial.

Dr. Tamosaitis, an employee of contractor URS, was a lead engineer at the Hanford Waste Treatment Plant on a research team addressing issues involving the mixing of toxic and radioactive sludge so that it be pumped into waste treatment processors. In his federal complaint, Tamosaitis alleged that he suffered retaliation after he challenged by contractor Bechtel claim that the mixing issues had been resolved by a July 2010 deadline, television station KNDU reports.

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New Jersey Supreme Court Widens State Whistleblower Protections

NJ Supreme Court Widens State Whistleblower Protections

NJ Supreme Court Widens State Whistleblower Protections

The New Jersey Supreme Court has widened the state’s whistleblower law, extending its protections to employees whose jobs entail identifying health and safety risks.

In a unanimous decision, the court affirmed an appeals court ruling that found whistleblower protections cover watchdog employees, NJ Spotlight reports. The 38-page decision was written by Justice Jaynee LaVecchia.

Advocates of the law argued that without protection against employer retaliation, employees whose job is to report health and safety issues may be less likely to speak out about problems they learn of. Business groups say that widening the law’s application may make it harder for companies to manage its watchdog employees, according to NJ Spotlight.

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AstraZeneca and Cephalon Agree to Settlements in Medicaid Rebate Suit

AstraZeneca & Cephalon Agree to Settlements

AstraZeneca & Cephalon Agree to Settlements

In separate settlements, drug makers AstraZeneca and Cephalon have agreed to pay more than $50 million to settle claims with the federal government, a number of states, and the District of Columbia that they underpaid rebates owed under the Medicaid Drug Rebate Program.

Under its settlement, AstraZeneca will pay $26.7 million to the federal government, with an additional $19.8 million split among 24 states and the District of Columbia, the Delaware News Journal (delawareonline) reports. Cephalon Inc. will pay $7.5 million in a separate settlement related to the same lawsuit.

In a statement from the Justice Department, Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said, “The Medicaid Drug Rebate Program relies on drug manufacturers reporting accurate pricing information used in the rebate calculations.” Mizer said the settlements “demonstrate the Department of Justice’s commitment to ensuring that state Medicaid programs receive the full amount of rebates from manufacturers that Congress intended.”

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$450 Million Settlement Reached for DaVita Whistleblower Case

$450 Million Settlement Reached for DaVita Whistleblower

$450M Settlement Reached for DaVita Whistleblower

DaVita Healthcare Partners Inc. has agreed to pay $450 million to settle whistleblower allegations, according to Daily Report. John Horn, the Acting U.S. Attorney in Atlanta, said the company allegedly caused federal health care programs to be overbilled by manipulating drug doses. “Through personal sacrifice and courage, two whistleblowers exposed knowingly wasteful dosing practices designed simply to increase profits and improperly drain the government’s resources,” Horn said, according to Daily Report. “This settlement returns hundreds of millions of dollars to the Treasury that had been improperly obtained by DaVita through these wasteful practices.”

Two whistleblowers alleged that DaVita, the largest provider of dialysis services in the country, implemented practices that intentionally created excess waste for financial gain. In the past, dialysis providers would be able to receive reimbursement from the federal government for certain waste if the leftover drug from a single-use vial was discarded after the drug is administered. This stopped in 2011, when the Centers for Medicare and Medicaid Services changed the way it reimbursed dialysis centers. Once this occurred, DaVita’s drug wastage decreased substantially.

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SEC Supports and Protects Whistleblowers

SEC Supports and Protects Whistleblowers

SEC Supports and Protects Whistleblowers

The Securities and Exchange Commission (SEC) has made a conscious effort to support whistleblowers who report fraud. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law, and an insider bounty program was put into place. The Act also contained anti-retaliation provisions. Forbes reports that the SEC has shown the program to be a success. More than $50 million in reward payments have been made to whistleblowers in the four years since the program has been in effect.

Whistleblowers from the United States and sixty foreign countries have submitted thousands of tips to the SEC’s Office of the Whistleblower since 2011. Seventeen whistleblowers have received awards totaling over $50 million. The commission has pursued companies that retaliated against their employees. Forbes reports that SEC Chair Mary Jo White called the SEC “the whistleblower’s advocate” in a recent speech.

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Perceived Whistleblower in Washington State Awarded $1 Million

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Whistleblower in Washington State Awarded $1M

Whistleblower in Washington State Awarded $1M

A man who was perceived as a whistleblower has been awarded $1 million. The jury verdict, which was issued on March 26, 2015, was issued after finding that the man’s demotion was a retaliatory action by his employer. The plaintiff in the case works for the Washington State Ferry System as a carpenter shop foreman. According to the lawsuit, the plaintiff became aware of a co-worker allegedly using a state-owned vehicle to attend baseball games and practices during work hours. He reported this information to his supervisor, who said he would investigate the issue, but did not.

Another person, not the plaintiff, filed an anonymous whistleblower complaint two months later regarding the same issue. Following the complaint, the plaintiff was allegedly subject to retaliatory actions, including performance-related warnings. The co-worker reportedly using the state-owned vehicle was suspended after a year-long investigation, but the plaintiff was still demoted. The demotion was supposedly for performance issues, but the plaintiff alleges that this was retaliation. The jury agreed, and awarded the verdict in his favor after finding that his employer violated the Washington State Employee Whistleblower Protection Act.

The plaintiff filed a lawsuit under the Washington State Employee Whistleblower Protection Act. This act protects both actual and “perceived” whistleblowers, defined as “[a]n employee who is perceived by the employer as reporting, whether they did or not, alleged improper governmental action … .”) The jury found that the plaintiff was viewed as a whistleblower and suffered subsequent retaliation.

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Senate Panel Approves Auto Industry Whistleblower Program

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Senate Panel Approves Auto Industry Whistleblower Program

Senate Panel Approves Auto Industry Whistleblower Program

On Thursday, the Senate Commerce, Science and Transportation Committee unanimously backed legislation that would offer whistleblower incentives to employees in the automobile industry. Reuters reports that all 12 Republican and Democrat members voted in favor of the legislation, sending it to the floor of the Senate. The measure follows recent safety concerns with automakers, including defective General Motors Co ignition switches and Takata Corp air bag inflators.

There is no definitive vote date thus far, said an aide to Senate Republican leader Mitch McConnell. If the full chamber votes in favor of the bill, it would then be considered by the U.S. House of Representatives.

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Maine Agrees to Pay $142,000 to Whistleblower who Allegedly Faced Retaliation for Refusing to Shred Public Documents

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Maine Agrees to Pay $142,000 to Whistleblower

Maine Agrees to Pay $142,000 to Whistleblower


A former division director for the Maine Center for Disease Control is to receive $142,000 to settle her whistleblower lawsuit. The Maine Department of Health and Human Services released the settlement agreement on Friday. According to Sun Journal, the whistleblower alleges that she suffered harassment and retaliation for refusing to shred public documents.

The documents were related to funding the Health Maine Partnerships programs, Sun Journal reports. In April 2013, the whistleblower filed a complaint with the Maine Human Rights Commission alleging that her bosses ordered her to shred these documents, along with other things.

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Whistleblower Lawsuit Accuses NantHealth of Fraud

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Whistleblower Lawsuit Accuses NantHealth of Fraud

Whistleblower Lawsuit Accuses NantHealth of Fraud


Health technology firm NantHealth is facing a lawsuit filed by two former executives alleging the company committed fraud. According to the New York Times, the wrongful-termination lawsuit was filed in a federal court in Panama City, Fla.

NantHealth’s system is meant to link patient information using different medical devices and pieces of hospital equipment. The company is owned by a billionaire surgeon and business entrepreneur whose business relationships have been scrutinized in the past. Over a decade ago, NYT reported that the surgeon headed a drug company with financial ties to Premier; the major purchaser of supplies for hospitals nationwide is not supposed to have such conflicts of interest.

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Arguments in Katrina Whistleblower Case Appeal Scheduled for February

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Whistleblower_Advisor_Arguments_Katrina_Whistleblower_Case_Appeal_for_FebruaryOral arguments have been scheduled for February in the 5th U.S. Circuit Court of Appeals in State Farm Fire and Casualty Co.’s appeal of an order that it pay legal fees and damages of $3 million in a whistleblower lawsuit. The jury found the insurer defrauded the government in a claim after Hurricane Katrina.

The case was brought in 2006 by Cori and Kerri Rigsby, sisters from Ocean Springs, Mississippi, who worked for an Alabama contractor that provided damages assessments to State Farm after the August 2005 hurricane, The Associated Press (AP) reports.
In 2013, a jury found that State Farm avoided covering a policyholder’s wind losses by categorizing it as water damage from the storm surge, which is covered by federal flood insurance.

The sisters pursued cases for a number of policyholders, but only one came to trial, the case of Thomas and Pamela McIntosh. The McIntoshes lost their Biloxi, Mississippi, home to the storm. The sisters allege State Farm defrauded the McIntoshes by manipulating engineers’ reports so claims could be denied, according to the AP. The Rigsbys also alleged that State Farm’s fraud against the National Flood Insurance Program was widespread along the Mississippi coast.

State Farm says it correctly assessed the McIntoshes’ damage and never instructed its adjusters to wrongly process claims as flood damage, nor did it withhold a report that showed the home had been destroyed by wind as the Rigbys alleged.

At State Farm’s direction, the flood insurance program paid the Macintoshes the policy limits of $250,000, the AP reports. State Farm initially paid the couple $36,000 for wind damage on a policy that provided more than $500,000 in coverage, according to court documents.

U.S. District Judge Halil S. Ozerden ordered State Farm to pay $750,000 in damages to the government. Under the federal False Claims Act, a whistleblower law dating back to the Civil War, individuals may sue on behalf of the government and receive a portion of funds recovered if the case is successful. If damages are upheld on appeal, the Rigsbys will each receive 15 percent of the $750,000 judgment, according to the AP.

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National Law Firm, Parker Waichman LLP, Seeks Increased Transparency and Ethics from the Pharmaceutical Industry in the New Year

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In the new year, Parker Waichman LLP hopes for increased testing, safety, and efficacy in the processes and promotions used by Big Pharma so that consumers may be confident that they are receiving safe and effective medications that were ethically developed, tested, and marketed.

Parker Waichman, a national law firm that has long been an advocate for victims of defective medications is urging the pharmaceutical industry, as we approach a new year, to step up the ways in which it develops, tests, inspects, and markets medications.

In the new year, Parker Waichman is seeking increased transparency and accountability from all drug makers, with the hope that patient welfare is made the key priority and placed before drug approval activities and profits.

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