What Is a Whistleblower?
Whistleblowers are an important weapon in the government’s ongoing battle against the gross waste of government resources. The whistleblower attorneys at Cutter Law P.C have the experience to help whistleblowers navigate the often complex process while protecting their rights.Â
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 The federal government has recovered over $70 billion of stolen funds, and $5.6 billion in 2021 alone, thanks to the willingness of whistleblowers to come forward.
The decision to expose wrongdoing is never easy. The experienced whistleblower attorneys at Cutter Law, P.C., can help whistleblowers navigate the process and protect their interests.
What does whistleblowing mean?
A whistleblower is an individual who reports wrongdoing to law enforcement or other authorities and has sufficient evidence. Whistleblowers are commonly employed by the wrongdoer.
Two Types of Whistleblowing
The two primary types of whistleblowing are internal and external.
Internal whistleblowing occurs when the misconduct is reported to authorities within the company, such as the human resources department or the CEO. Many whistleblowers initially blow the whistle internally only to find that no action is taken to correct the misconduct.
External whistleblowing occurs when the conduct is reported to law enforcement or such government agencies as the following:
- The Inspector General
- The United States Securities and Exchange Commission (SEC)
- Occupational Safety and Health Administration OSHA
- The United States Office of Special Counsel (OSC)
- The United States Congress
Verdicts and Settlements
At Cutter Law P.C., we have a long record of successfully representing whistleblowers in multiple industries. Below is a representative snapshot of the successful cases our law firm has handled:
$23.5 Million
Qui tam settlement for government fraud claims brought against Medtronic Inc., one of the world’s largest medical device manufacturers, on behalf of one of four whistleblowers.
$240 Million​
Settlement in a nationwide defective medical device case involving defective pacemakers and cardiac defibrillators against Boston Scientific and Guidant
$12.95 Million
John R. Parker recently handled a case against the medical device company, Biotronik, Inc. for claims that they defrauded state and federal government agencies.
$4.7 Million
Brooks Cutter and John Parker obtained the settlement on behalf of our whistleblower clients in a case involving government fraud.
Whistleblower Laws
Whistleblower laws are designed to provide guidance, protection, and incentives for whistleblowers to come forward.
False Claims Laws
The Federal False Claims Act (FCA) makes it illegal for government agencies to falsely or fraudulently file claims for federal funds or property. The act imposes fines of up to triple the government’s damages plus treble damages linked to inflation. False Medicare claims by healthcare providers are one of the most common violations of this act.
The act allows private individuals to file a lawsuit on behalf of the government, known as qui tam lawsuits. In qui tam lawsuits, whistleblowers are called relators. The government can intervene in these cases or allow the individual to pursue the case on its behalf.
The California False Claims Act is similar to the Federal FCA, except its provisions apply to false claims made for state funds. It is enforced by the state attorney general and the False Claims Unit. The California FCA also allows private citizens to file qui tam lawsuits under seal on behalf of the state.
Whistleblower Protection Laws
The Whistleblower Protection Act, enforced by the Department of Labor, protects federal employees and contractors by prohibiting employers from retaliating against whistleblowers.
Any whistleblower report provided to an appropriate internal or external authority is a protected disclosure under the act. Retaliation can include the following:Â
- Termination
- Unfavorable performance reviews
- Failures to promote
- Demotions
- Unfavorable work schedules
- Unwanted job transfers
- Blacklisting
- Any adverse action
The state of California similarly protects whistleblowers against reprisal under California Labor Codes and the California Whistleblower Protection Act.
Sarbanes-Oxley Act
The Sarbanes-Oxley Act of 2002 (SOX) increased auditing and reporting requirements for publicly traded companies and added protection for corporate whistleblowers. OSHA receives retaliation complaints that violate securities laws under SOX.
Dodd-Frank
Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 implemented a whistleblower program specific to banks, investment firms, and other financial services providers. Violations are reported to the SEC and include such activities as the below:
- Ponzi schemes
- Theft
- Mismanagement of funds
- Insider trading
- Money laundering
- Any fraudulent conduct
Whistleblowers need not be employees.
OSHA’s Whistleblower Protection Program
In addition to SOX, OSHA enforces whistleblower protection laws included in over 20 statutes, such as the following:
- Clean Air Act
- Toxic Substances Control Act
- Consumer Financial Protection Act
- Modernization Act
- Solid Waste Disposal Act
The Personal Toll of Whistleblowing
Despite state and federal laws against it, retaliation against whistleblowers still occurs. One study revealed that 74 percent of whistleblowers are terminated, and those remaining experience other forms of retaliation, including poor performance evaluations, harassment, and demotions.
Qui tam lawsuits can take years to resolve, and whistleblowers have faced financial ruin, ostracization by coworkers, and emotional duress. Blowing the whistle requires courage and fortitude.
Testimonials
How does Cutter Law, P.C., help whistleblowers?
The attorneys at Cutter Law understand the challenges whistleblowers face. Whistleblowers are heroes who place their own interests on the line for the benefit of the public interest. Our observations have been that most whistleblowers do not blow the whistle for compensation. It is about doing what is right, whatever the cost.
Cutter Law, P.C., provides vigorous advocacy and aggressive pursuit of entities that defraud the public. We have won millions on behalf of whistleblowers. Our whistleblower attorneys offer free case evaluations, and we do not charge fees until you recover compensation.
If you have direct knowledge of wrongdoing, contact us today to schedule your free consultation.
Whistleblower Frequently Asked Questions
Recognizing the value of whistleblowers, the federal government and the SEC compensate whistleblowers 10 to 30 percent of the funds recovered as a result of whistleblower disclosures.
Blowing the whistle is an intentional act of exposing wrongdoing that defrauds the public. Whistleblowing protects public interests.
Leaking is the act of revealing classified or confidential information to sources who are not entitled to such information. Leaking can be unintentional and is often a violation of laws. Leaking can harm public interests by threatening our nation’s national security.
The law protects whistleblowers. Leakers are not entitled to legal protection and can be prosecuted.
Whistleblowing exposes illegal activity that harms the government and taxpayers. The decision to blow the whistle is difficult because some may construe such action as disloyalty. Allowing a company to continue defrauding the public is unethical. In many situations, blowing the whistle is the only ethical choice.
Employees who discover wrongdoing by corporations or government agencies often struggle with the decision of whether to blow the whistle or look the other way. It is not a simple decision. While doing the right thing seems like a straightforward solution, the consequences of the decision can be significant.
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