Posts from November 2014.
6th Circuit Says FCA Only Protects Whistleblowers in “Employmentlike Relationships"

The U.S. Court of Appeals for the Sixth Circuit held last week that the FCA does not bar prospective employers from discriminating against job applicants for having served as whistleblowers against different companies in the past.

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SEC’s Dodd-Frank Whistleblower Program Grows Significantly - and Consistently - for Third Straight Year

The U.S. Securities and Exchange Commission (“SEC”) released its annual report to Congress on its Dodd-Frank whistleblower program last week. As in years past, the results are heartening for prospective whistleblowers, shareholders, and good governance advocates worldwide: For fiscal year 2014, the SEC’s Office of the Whistleblower (“OWB”) received 3,620 tips—nearly 400 more than in fiscal year 2013, and about 20 percent more than the agency received in fiscal year 2012, which was the program’s first full year in operation.

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CPM Responds to Surge of Undocumented Children with Pro Bono Services

Due to rampant drug and gang violence in Central America—particularly in El Salvador, Guatemala and Honduras—there has been a huge influx or “surge” of unaccompanied minors immigrating to the United States. 

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Report: “Private Placement” Issuers and Brokers Take Exploitation of Main Street Investors to New Heights Amid Fracking Boom

“Wildcatter” oil and gas prospecting companies and unscrupulous brokerage firms are riding the explosive growth of hydraulic fracturing, or “fracking,” in the United States to reap sizable profits off unsuspecting Main Street investors, according to a recent investigative series report done by Reuters.  According to a recent report issued by Reuters, Ameriprise shaped deals to sell more securities potentially harming investors.  

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California Attorney General Joins Cotchett, Pitre & McCarthy in Whistleblower Case Against BP

It was publically revealed yesterday that the California Attorney General’s Office is joining a whistleblower case against BP (formerly British Petroleum) that accuses the oil company of massive overcharging of California cities, counties, universities, and government agencies on purchases of natural gas over the course of the past decade.

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California Legislature’s Changes to Labor Code Finally Paying Off for Whistleblowers

The Legislature has enacted several changes to the California Labor Code designed to protect employee-whistleblower activity. Many of these changes relate directly to areas in which CPM practices. The Legislature’s changes are beginning to pay real dividends to whistleblowers who expose the corporate wrongdoing of their employers.

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Feds Continue to Target “Forced Arbitration” Clauses in Consumer, Employment Contracts

In a recent op/ed in Salon, labor and consumer organizations teamed up to criticize the vast impact of “forced arbitration” clauses in consumer and employment contracts, and to call on Congress to act on behalf of the great majority of its constituents and ban the practice.

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“The Outsiders”: New Ninth Circuit Ruling on the Public-Disclosure Bar and Original Source Exception

On October 29, 2014, the Ninth Circuit issued a published opinion in Malhotra v. Steinberg, et al. that contains a detailed discussion of the public disclosure bar, and the original source exception, of the False Claims Act. The opinion is helpful in reiterating the Ninth Circuit’s approach to the public disclosure bar, and provides a bit more guidance on a few open issues, including the definition of “outsiders” as it relates to the public disclosure bar. 

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Sixth Circuit Upholds Gay Marriage Bans, Setting Stage for Likely Supreme Court Review

On November 6, 2014, a three-judge panel of the United States Court of Appeals for the Sixth Circuit upheld bans on gay marriage in Kentucky, Michigan, Ohio and Tennessee. The ruling in the consolidated appeal overturns four district court decisions that found the bans unconstitutional. Significantly, the Sixth Circuit’s opinion contradicts decisions from four other federal circuit courts of appeal finding similar bans unconstitutional and is the first time a federal circuit court has upheld a gay marriage ban after the Supreme Court’s landmark decision in United States v. Windsor, 133 S. Ct. 2675 (2013) (finding the Defense of Marriage Act unconstitutional). The United States Supreme Court has thus far declined to hear appeals from decisions finding the bans unconstitutional, but the Sixth Circuit’s decision creates a “circuit split,” making Supreme Court review likely.    

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Newly Published Ninth Circuit Case Non-Controversial, Despite Abortion-Debate Undertones

A recently published Ninth Circuit case interpreting the California False Claims Act proved relatively non-controversial, despite involving a dispute at the fringes of the abortion wars. In the case, Gonzalez v Planned Parenthood, 759 F.3d 1112 (9th Cir. 2014) (“Gonzalez”), a former Planned Parenthood director sued the organization’s Los Angeles branch under the federal False Claims Act and the California False Claims Act, alleging that Planned Parenthood overcharged California’s Medi-Cal program (specifically, Medi-Cal’s “Family PACT” program) for contraceptives provided to low-income individuals. The relator was represented in the case by the American Center for Law & Justice, a conservative Christian law firm founded by Pat Robertson. The lawsuit was presumably inspired (at least in part) by ideological disdain for the work of Planned Parenthood.

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Center for Investigative Reporting Covers CPM's Spinal Screw Case

The Center for Investigative Reporting published a 4,000-word article yesterday detailing a Southern California medical equipment supplier’s scheme to use private plane rides, international vacations and cash-stuffed envelopes to recruit doctors to use his company to buy spinal surgery screws – many of which were apparently counterfeit. 

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