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Mississippi Whistleblower Attorney Discusses Wisconsin Social Security Whistleblower Case

A legal assistant for the Social Security Administration (SSA) says that he lost his job after he dutifully followed the federal code of ethics which requires government employees like himself to disclose any fraud, corruption, waste, or, abuse to authorities. Another woman, who had held a management position at the SSA, has been removed from that position and placed on administrative leave after alleging that corruption and cover-ups were taking place at the Madison, Wisconsin ODAR facility. A third woman, who had been working as a  legal assistant at the same facility, has testified in an office sexual harassment investigation that she has been denied reasonable accommodations for her ongoing health concerns that are related to workplace stress. These are just three of the employees at the Madison, Wisconsin ODAR facility who have been disciplined in one way or another after exposing fraud, waste, and abuse within the Social Security Administration. This discipline, which amounts to defiance of the Congressional mandate, is continuing to occur despite the fact that it obviously violates the provisions of whistleblower protection legislation.

Federal employees have a right to provide information to Congress, and they are obligated by a federal code of ethics to disclose inappropriate activities that they see to authorities. Federal employees are also protected by the Whistleblower Protection Enhancement Act, which was signed into law by President Obama back in 2012. The Office of Special Counsel (OSC) is supposed to provide support to whistleblowers who are encountering inappropriate responses from their employers. Unfortunately, whistleblowers from the SSA have not had much luck in getting that help, and they claim that the OSC has not answered the questions that they have approached them with and that they have not been treated kindly by OSC personnel.

The SSA’s Office of the Inspector General is supposedly investigating a situation at the Madison ODAR facility involving an administrative law judge who is accused of sexually harassing employees, among other things. However, the SSA is said to have repeatedly ignored requests for information by the Senate Homeland Security and Governmental Affairs Committee.

This rash of problems for whistleblower within the SSA is, unfortunately, not a new issue. In 2003, the  SSA refused to comply with repeated demands from Congress regarding an audit involving evidence destruction and case delays. The SSA did eventually comply by providing the incriminating report, but those events did nothing to build Congress’s trust in the SSA.

Barrett Law PLLC:  Protecting Mississippi Whistleblowers

If you witnessed violations of federal law in your workplace, the Mississippi Whistleblower Attorney at Barrett Law PLLC could help you file a whistleblower lawsuit.  Our experienced attorneys understand the complexities of whistleblower lawsuits, including those that are related to federal employees. Our attorneys can help you understand the whistleblower case process and pursue resolution of your whistleblower protection matter.  Call the experienced whistleblower protection attorneys at Barrett Law PLLC today at 1 (800) 707-9577 to schedule a free, initial consultation.

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Mississippi Whistleblower Attorney Talks about Whistleblower Cases in Public Schools

Whistleblower lawsuits can arise in any type of organization, including workplaces that many people participate in because they want to serve their communities or a specific group of people within their communities, such as youth.  Individuals who work at schools, churches, and other organizations that are integral to our communities may encounter inappropriate conduct during the course of their employment or even during the course of volunteer work. A former middle school football coach in Tennessee is suing the team’s head coach and the county school board for defamation and wrongful termination. The same former coach plans to file a federal lawsuit on behalf of several football players and their families, alleging that racism and sexual harassment are occurring within the school’s football program.

The former coach claims that someone related to the head coach of the football team had been bullying some of the players with inappropriate language and behavior. Some of the behavior and remarks were sexual in nature, and other behavior and marks were allegedly racist. The head coach had assigned coaches to be present in the locker rooms, but the former coach was assigned security detail in the parking lot and told that the coaches were needed in the locker rooms because of alleged thefts that had been occurring. The now former coach had informed the head coach about reports of racist language that allegedly involved the head coach’s relative, as well as reports that he had been hearing regarding sexual behavior and threats involving that same relative. The now former coach and the head coach met with school officials, and sometime after those meetings occurred, the now former coach was fired via text message.

The lawsuit that is currently being brought by the now former coach also alleges that in addition to not addressing the inappropriate behaviors that were going on, the head coach misinformed the team about the reason why the now former coach is not coaching any more, stating that the misinformation amounts to defamation. He states that he now experiences significant anxiety because of all that has happened, as well as mental anguish, emotional distress, loss of enjoyment of life, and irreparable injury to his personal and professional reputation.

Barrett Law PLLC:  Supporting Mississippi Whistleblowers One Case at a Time

Whistleblower lawsuits are very intense and emotionally taxing experiences. That said, they are absolutely essential to exposing conduct that violates the rules and, in some cases, even violates people’s rights. The Mississippi Whistleblower Attorneys at Barrett Law PLLC may be able to help you if you believe that you have a whistleblower claim.  Our attorneys have gained invaluable experience by helping our clients through their whistleblower lawsuits, and they know how to provide the comprehensive support that you need.  To learn more about how we can help you to pursue a whistleblower lawsuit, please call the Mississippi Whistleblower Attorneys at Barrett Law PLLC today, at 1 (800) 707-9577 to schedule your free, initial consultation.

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Mississippi Whistleblower Attorney Says SEC Whistleblowers are Not Guaranteed to Collect

In 2010, the United States Securities and Exchange Commission (SEC) established a whistleblower program. This program promises substantial bounties to those who expose wrongdoing, but some whistleblowers who have assisted the SEC say that the award money is slow to come, if it ever comes at all. A close look at the structure of the SEC whistleblower program gives some hints as to why this may be the case.

The reason for the delays in payment may be that the awards are only paid out on sanctions that are actually collected by the SEC. This means that the SEC must receive the funds from the parties who were sanctioned before the award is calculated and sent to the whistleblower. In some cases, it is possible that some or all of the sanctions may be unavailable for collection due to perpetrators who escape from the jurisdiction of the United States with their money or situations in which the money vanished during the course of the fraudulent activity. The collection requirement of the whistleblower program could also explain why whistleblowers reporting on some of the most commonly reported sources of fraud, including penny stocks, U.S.–listed Chinese stocks, and pyramid schemes, encounter difficulty in collecting payment. Some of the whistleblowers who are waiting for payment have made numerous claims for awards in various fraud cases. Unfortunately, the SEC does not make information readily available regarding whether specific sanctions have been collected, so whistleblowers have no way of knowing whether they should expect payments to be forthcoming.

According to the SEC, over fifty million dollars in awards have been paid out already, with more payments to come as sanctions are recovered. Since the beginning of the whistleblower program, over ten thousand tips have been submitted, three hundred people have applied for bounties, and seventeen payouts have been made. The agency views the program as a tremendous success, and hopes that whistleblowers will continue to expose the frauds that they have witnessed.

Barrett Law PLLC:  Protecting the Rights of Mississippi Whistleblowers

The bounties that are promised by the SEC whistleblower program have attracted a lot of tips from people who are eager to expose wrongdoing that they have encountered. While the structure of the SEC whistleblower program does create some uncertainty about whether and when individual whistleblowers will be paid for their participation in the program, some of the whistleblowers who have not been paid continue to sniff out and expose fraud. If you have witnessed fraudulent business dealings like the types that the SEC whistleblower program seeks to expose, the Mississippi Whistleblower Attorneys at Barrett Law PLLC are here to help you.  Our attorneys are skilled at navigating the complexities of whistleblower lawsuits, including the SEC whistleblower program, and they can help you pursue a successful resolution of your case. Call the knowledgeable and dedicated whistleblower attorneys at Barrett Law PLLC today at 1 (800) 707-9577 to schedule your free, initial consultation.

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Mississippi Whistleblower Attorney Discusses the Final Rule for Whistleblower Retaliation Complaints

Last month, the Occupational Health and Safety Administration issued a Final Rule which sets forth the procedures by which specific categories of whistleblower retaliation complaints, namely those which are described in Section 806 of the Sarbanes-Oxley Act, will be handled by the Administration. The claims covered by the Final Rule may be brought by various classes of employees and contractors, and Section 806 protects them against retaliatory actions by their employers. These retaliatory actions, such as demotions or dismissals, are sometimes taken by companies, against whistleblowers, in connection with the whistleblowers’ actions in reporting violations of Securities and Exchange Commission rules or other laws to the appropriate authorities.

Now that the Occupational Health and Safety Administration has issued its Final Rule, whistleblowers can feel confident that if they experience retaliation after exposing wrongdoing on the part of their employer, the provisions of the new Final Rule support an outcome that will repair the damage that was done by the retaliation. Whistleblowers play an important role in ensuring that companies who break rules will be held accountable for their actions. It is hoped that the Final Rule will help deter companies from taking retaliatory actions against present and future whistleblowers, in addition to offering protection to those who have already experienced retaliation.

Another important feature of the recently issued Final Rule is that complaints may be made verbally. Section 806 complaints used to have to be written, and had to include a full description of the alleged wrongdoing. The Final Rule allows whistleblowers to verbally relate their complaint to an investigator from the Occupational Health and Safety Administration, who then reduces the complaint to writing. The Final Rule also provides for the reinstatement of the complainant to their former position while a dispute is pending, or, in the alternative, under the Final Rule, the complainant may collect the same pay and benefits that they would have been collecting in their former position, without having to return to work.

Barrett Law PLLC:  Defending the Rights of Mississippi Whistleblowers

The Final Rule that was recently set forth by the Occupational Health and Safety Administration supports whistleblowers that have experienced retaliation as they went about their quests for justice.  To learn more, or if you have experienced any type of retaliatory action at the hands of your employer, the Mississippi Whistleblower Attorneys at Barrett Law PLLC are here to help you.  Our attorneys are skilled at navigating the complexities of whistleblower lawsuits, and they can help you pursue a successful resolution of your case.  Call the hard working and dedicated whistleblower attorneys at Barrett Law PLLC today at 1 (800) 707-9577 to schedule your free, initial consultation.

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Mississippi Whistleblower Attorney Talks about Investigations into DuPont Chemical Exposures

An environmental whistleblower has alleged that sulfur trioxide, a poisonous gas, has been leaking continuously from a DuPont chemical plant for the past three years, and that DuPont did not report those leaks as required by law. The whistleblower alleges that DuPont used plastic tubes and duct tape to temporarily fix the leaks instead of shutting the plant down for a long enough time in order to perform proper and lasting repairs. The whistleblower alleges that the leaks should have been reported to the Environmental Protection Agency under the Toxic Substance Control Act, but that they were not reported because the company wanted to avoid being fined for the chemical releases by the federal government.

DuPont has denied the whistleblower’s allegations and claims that the plant is tightly regulated by state and federal agencies. It further states that no proof of harm from the alleged releases can be obtained. This whistleblower trial is the latest legal action which calls DuPont’s safety record into question. DuPont has reported thirty four accidents involving toxic releases and at least eight fatalities at its American plants since the year 2007. Last year, four workers at another DuPont plant died after they were exposed to methyl mercaptan. Federal and state officials are still investigating the deaths of those workers.

The current whistleblower lawsuit uses the provisions of the False Claims Act in a novel way, to address a situation in which there is alleged to have been a lack of environmental reporting by a company in order to avoid fines. In cases like this, a whistleblower can recover their court costs and also win a share of the government’s recovery, if the government is awarded damages because of the evidence that the whistleblower supplied. In this case, the whistleblower is someone who previously served DuPont for fourteen years as the chair of the plant’s Safety, Health and Environment Committee. He believes that a company manual required him to report chemical releases, such as the aforementioned leaks, as required by the Toxic Substance Control Act. He claims that he made multiple reports to his supervisors about the leaks, but the plant manager advised him to keep the information inside the company. His claim is supported by photos and videos, testimony from other senior plant employees, and even an audio tape of the plant manager warning employees not to discuss emissions with outside agencies.

Barrett Law PLLC:  Standing up for Mississippi Whistleblowers  

If you exposed the wrongdoing of your employer to your detriment, the Mississippi Whistleblower Attorneys at Barrett Law PLLC are here to help you pursue a whistleblower claim.  Our attorneys know how to guide you through the whistleblower claims process and towards full financial recovery for the various types of losses and damages that you have experienced as a result of your brave actions.  Please call the knowledgeable whistleblower attorneys at Barrett Law PLLC today at 1 (800) 707-9577 to schedule your free, initial consultation.

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Mississippi Whistleblower Attorney Says KiOR May Have Misled Mississippi into Lending Millions

The billionaire who funded a now- bankrupt biofuel firm is being sued by the state of Mississippi because the state believes that he, along with others, intentionally misrepresented the biofuel firm’s chances for success to the state and convinced the state to loan the company seventy five million dollars.

The lawsuit alleges that billionaire Vinod Khosla and others knew that KiOR’s technology, which produces crude oil from wood, did not perform nearly as well as they had represented that it did. The lawsuit alleges that KiOR fraudulently stated that sixty seven gallons of bio crude had been produced from each ton of dry wood that was burned in the company’s Texas demonstration plant. The actual bio crude yield at the Texas facility was closer to between thirty and forty gallons of bio crude per ton of dry wood. The Mississippi lawsuit also alleges that Khosla and others knew that the company was not a commercially viable operation, and that it would never be a commercially viable operation, even though they confidently represented it as such. The Mississippi lawsuit against Khosla also alleges that KiOR’s management team engaged in behavior that was aimed at silencing the voices of internal critics who questioned the numbers that the company was providing to the state and to its investors.

Shareholders are also suing the bankrupt company, and a former board member has filed a whistleblower lawsuit. The Securities and Exchange Commission is investigating these claims. In 2013, a class-action lawsuit was filed against KiOR by investors, claiming that the biofuel firm’s potential for economic success had been intentionally misrepresented, which seems nearly identical to the fraudulent misrepresentation that is alleged to have happened in Mississippi.

Barrett Law PLLC:  Fighting for the Freedoms of Whistleblowers across the State of Mississippi

When a company is engaging in activities that are against the law, they expect their employees to just go along with it. Employees should not be expected to stand back and let illegal activities take place or participate in illegal activities themselves in order to keep their jobs. Whistleblowers stand up for what is right when they take action to expose what is going on that is wrong. Unfortunately, although the activities of whistleblowers benefit everyone, whistleblowers may be harmed by those who their actions threaten to expose.  Fortunately, the state provides protection to individuals who face these types of situations at work and decide to take action to expose the illegal activity. If you are a whistleblower who has suffered from any sort of retaliatory action, the Mississippi Whistleblower Attorneys at Barrett Law PLLC would like to assist you.  Our attorneys know that whistleblower lawsuits can be complicated, and we will lead you through the complexities and towards a full recovery for any losses that you experienced because of your lawful actions.  Call the dedicated whistleblower attorneys at Barrett Law PLLC today at 1 (800) 707-9577 to schedule your free, initial consultation.

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Mississippi Whistleblower Attorney Says Government May Have Been Defrauded After Katrina

State Farm has been ordered to pay legal fees and damages of three million dollars to two whistleblowers who called attention to the insurer’s fraudulent actions after Hurricane Katrina. The two whistleblowers, who are sisters, worked for a company that was hired as an independent contractor for State Farm. As part of their work, they visited homes to prepare damage assessments.

The sisters alleged that State Farm committed fraud against the National Flood Insurance Program by blaming damage to homes on the storm surge, which is covered by the National Flood Insurance Program, instead of on wind, which would be covered by the insurance policies that they had issued. The sisters’ case was limited to one property that they had worked on and therefore had acquired personal knowledge of. In that case, the National Flood Insurance Program paid the homeowners two hundred and fifty thousand dollars that was categorized by State Farm as flood damage. State Farm also paid the homeowners a much lower amount, saying that their payment was for the portion of the damages caused by wind. After the fraud was exposed, the insurance giant was ordered to repay the government for the two hundred and fifty thousand dollars that the NFIP had paid to the homeowners, in addition to the damages and attorneys’ fees due the whistleblowers.

It is important to note that the sisters claim that the case which they were directly involved in was not an isolated incident, and that State Farm had a widespread practice of doing the same thing for other claims on properties along the Mississippi Coast after hurricane Katrina. State Farm has filed a counterclaim against the whistleblowers, alleging that they violated the law by taking company files, and that counterclaim is pending.

Barrett Law PLLC:  Protecting the Rights of Mississippi Whistleblowers

Insurance fraud can cost homeowners money, in the form of higher premiums for everyone. When the government is defrauded, public funds are used to pay for damages that should have been paid for by a private company. The whistleblowers who exposed State Farm’s fraudulent handling of one hurricane damage claim have opened the door to investigation into whether other claims were handled properly. Hurricane Katrina cost the government a lot of money, and it is important that funds are repaid if it is determined that private insurers did not bear their fair share of the burden. It is important that people who have information about other situations in which similar instances of insurance fraud may have occurred bring that information to the attention of those who can investigate the situation further.

If you have already become a whistleblower, you may be the target of retaliatory action. The Mississippi Whistleblower Attorneys at Barrett Law PLLC are here to help you.  Our attorneys have experience with navigating the complexities of whistleblower lawsuits. They can help you pursue recovery for the losses that you have experienced as a result of your lawful actions.  Call the compassionate and dedicated whistleblower attorneys at Barrett Law PLLC today at 1 (800) 707-9577 to schedule your free, initial consultation.

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Mississippi Whistleblower Attorney Explains How Whistleblowers Are Subject To Discrimination

Many whistleblowers face retaliatory actions once their complaint is filed and their identity discovered. With the potential of having a monumental effect on a company, employees generally fall out of favor with their superiors. That often translates into a termination of their employment.  However, a company cannot simply fire an employee for exposing some kind of truth. When there is inadequate reason for dismissal, discrimination becomes a major part of the whistleblower’s case.

Such discrimination is evident when there is an insufficient investigation into charges filed against an employee. A company will often charge an employee with some sort of infraction and then terminate their employment without coming up with adequate proof. The timing of the termination is also very telling. If an employee is discharged shortly after blowing the whistle, there is plenty of evidence to prove that discharge was discriminatory.

Employees are all rated on their performance. Discrimination is easy to pinpoint when ratings suddenly drop. It is uncharacteristic for an otherwise productive employee to suddenly experience a significant dip in performance rating. Nonetheless, companies often attempt to blame dismissals on poor work performance. Instances such as those are also made to serve as an example to other employees.  Specifically, it sends the message that if they attempt to become a whistleblower, they too will lose their job.

Differential treatment often becomes quite apparent after an employee blows the whistle on a company. It is one of the oldest and most blatant forms of discrimination. Suddenly hostile attitudes are directed to the employee, making for a very uncomfortable work environment.

Unfortunately, laws only offer so much protection to whistleblowers. In some cases, there are slim statutes of limitations. Tragically, many companies get away with unfair treatment and whistleblowers are often left without employment.

Many whistleblowers face retaliatory actions once their complaint is filed and their identity is discovered. With the potential of having a monumental effect on a company, employees generally fall out of favor with their superiors. That often translates into a termination of their employment.  However, a company cannot simply fire an employee for exposing some kind of truth. When there is inadequate reason for dismissal, discrimination becomes a major part of the whistleblower’s case.

Such discrimination is evident when there is an insufficient investigation into charges filed against an employee. A company will often charge an employee with some sort of infraction and then terminate their employment without coming up with adequate proof.

The timing of the termination is also very telling. If an employee is discharged shortly after blowing the whistle, there is plenty of evidence to prove that the discharge was discriminatory.

Employees are all rated on their performance. Discrimination is easy to pinpoint when ratings suddenly drop. It is uncharacteristic for an otherwise productive employee to suddenly experience a significant dip in performance rating. Nonetheless, companies often attempt to blame dismissals on poor work performance.

Instances such as those are also made to serve as an example to other employees. It sends the message that if they attempt to become a whistleblower, they too will lose their job.

Differential treatment often becomes quite apparent after an employee blows the whistle on a company. It is one of the oldest and most blatant forms of discrimination. Suddenly hostile attitudes are directed to the employee, making for a very uncomfortable work environment.

Unfortunately, laws only offer so much protection to whistleblowers. Tragically, many companies get away with unfair treatment and whistleblowers are often left without employment.

An important step towards preventing that from happening is to document every single act of discrimination. If there is an act that seems even the least bit discriminatory, write it down and then present it to the Human Resources department. Human Resources is obligated to investigate your complaint. Also be ready for any retaliation that may follow as a result of your complaint. Chances are that will indeed happen.

Discrimination even extends to social media networks like Facebook and Twitter. A company can be penalized for the simple task of slandering an employee on a social media network. Coincidentally, employees are permitted to say whatever they want via social media without repercussions from their employer. The National Labor Relations Board has come out publicly stating that employees have the right to talk about work conditions on social media networks without fear of retaliation from their employer.

It is common knowledge that whistleblowers are generally in for a tough time at work once they blow the whistle. While that remains a reality, it is a gross injustice and also highly illegal. That is why it is important to document every part of the process and file the appropriate complaints when necessary.

If you are involved in a whistleblowing case, contact the seasoned Mississippi Whistleblower Attorney at Barrett Law PLLC. We can help you from beginning to end with a team of attorneys who will fight for every one of your rights. Experienced legal counsel in Mississippi is just a phone call away. Contact us today for a free confidential consultation at (800) 707-9577.

 

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The United States Supreme Court Upholds Whistleblower Protections

In the case that was heard before the U.S. Supreme Court (Lawson v. FMR, U.S. Supreme Court, No. 12-3),  the arguments made by FMR, LLC, the parent company of Fidelity Investments (Fidelity), that whistleblower protections should not extend to contractors working for the company, were ultimately rejected.  This case affirms the position that under the Sarbanes-Oxley Act, whistleblower protection extends beyond direct employees.  In a 6-3 vote, the Supreme Court ruled that whistleblower protections apply to the subcontractors who do business with the publicly traded companies covered by the terms of the Sarbanes-Oxley Act, including law firms, accounting firms, investment advisers, and other companies.

At issue in this case was the whistleblower protection provision in the Sarbanes-Oxley Act, which was passed in 2002 as a means of reforming financial transactions.  The Act created a set of standards for management and public accounting firms, as well as publically traded company boards.  Attorneys arguing against the broad interpretation of the whistleblower protection provision stated that the ruling would expand the application of the protection from 5,000 companies to more than a million businesses, including small businesses.

This case arose out of the termination of the contract of a senior director of finance and another individual after they reported some improprieties with cost-accounting. Fidelity Investments has mutual funds that are public companies required to file reports with the U.S. Securities and Exchange Commission (SEC).  However, the management of the funds is carried out through private companies that are under contract.  The whistleblowers in this case, Jackie Lawson and Jonathan Zang, worked for Fidelity Brokerage Services LLC. They brought a whistleblower retaliation case against Fidelity after they were terminated, allegedly as the result of reporting improper company practices.  Due to the fact that Fidelity uses a contractor model to operate its funds, there are no direct employees.  The dissenting judges stated that the decision was too broad, leading to the possibility of lawsuits brought by low-level employees who were terminated for other reasons after viewing a trivial offense.  These federal retaliation claims could be brought against small businesses, leading to many cases that would not have been brought otherwise.

The Supreme Court’s decision in this case was based on the fact that the Sarbanes-Oxley Act granted whistleblower protection to “any officer, employee, contractor, subcontractor, or agent.”  The Court ruled that it was not possible for Congress to have passed an act that did not offer protection to someone like Jackie Hosang Lawson and Jonathan Zang, the Fidelity contractor employees who brought the retaliation claim.  In writing the opinion for the Court, Justice Ruth Bader Ginsburg addressed the arguments that there would be a lot more retaliation claims by stating that there was little evidence that the floodgates would open.

When a person brings a retaliation claim against a former employer stating that the employment was terminated or the employee was demoted based, at least in part, on retaliation for reporting a financial impropriety.  The employee only needs to satisfy the “preponderance of the evidence” standard while the employer must show that the employee was terminated or demoted for legitimate reasons by clear and convincing evidence.  Under the interpretation of the Sarbanes-Oxley Act, the financial impropriety might be based on mail fraud or wire fraud.  Critics of the ruling claim that this imbalance will lead to inequity.

Whistleblower protections are necessary to provide a means of redress for employees who were terminated after reporting a problem within the business.  Although it is never easy to go through a lawsuit, the skilled and compassionate whistleblower and qui tam attorneys at Barrett Law PLLC will work with you to enforce your rights and hold the company accountable for your wrongful termination.  To discuss what happened to you, call us at (800) 707-9577.  Our attorneys only get paid if we succeed on your claim.

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New York Federal Court Judge Revives Hawker Beechcraft Corp. Whistleblower Case

A whistleblower case that was precluded by the ruling of a bankruptcy court judge has been given new life by a New York federal court judge.  In March 2012, Hawker Beechcraft filed for Chapter 11 bankruptcy protection.  When Hawker Beechcraft Corp. went through the bankruptcy process, it had a 2.3 billion dollar False Claims Act case pending against it.  The action was based upon allegations that the company had used defective parts in manufacturing planes that were subsequently sold to the U.S. government.

The bankruptcy judge ruled that the claims did not satisfy the stringent requirements for exemptions of some types of debts that prevented them from being written off in the reorganization plan.  However, the recent federal court ruling now gives the whistleblowers the chance to argue their case in bankruptcy court, even though a bankruptcy exit plan is in place, the company emerged from bankruptcy in 2013, and Hawker Beechcraft now has been sold to Textron Inc.

Two former employees of a subcontractor to Hawker Beechcraft, TECT Aerospace Inc., are going to be able to argue that they are entitled to recover on behalf of the government for defective plane parts in planes that were purchased by the U.S. government.  The False Claims Act provides private citizens with the right to bring actions based on wrongdoing done to the U.S. government.  In the matter of Hawker Beechcraft, the planes with defective parts were purchased by the U.S. Navy and Air Force, thereby involving fraudulent actions impacting government entities.  This case involves possible penalties up to 2.3 billion dollars.  When an action like this is brought, the private citizen who initiated the case gets a portion of the damages that ultimately are awarded.  This action proved to be very complicated because of the bankruptcy of Hawker Beechcraft.

After the Hawker Beechcraft bankruptcy was filed, the bankruptcy judge ruled that there was nothing about the False Claims Act action and the potential monetary award that justified it being exempt from the write off of debts in bankruptcy.  There are very few exceptions to this rule, which include student loans, child-support payments, and damages awards arising out of drunk driving injuries.  The bankruptcy judge determined that the claims did not fit within the narrow loophole.  The two claimants asserted that the dismissal of their whistleblower lawsuit was improper based on the fact that it was grounded in allegations of government contracting fraud.  A New York judge now has agreed with them and they will get a second chance at recovering for the fraudulent actions of Hawker Beechcraft.

The recent decision by Judge P. Kevin Castel grants whistleblowers the right to argue their claims in bankruptcy court.  However, it by no means guarantees them a recovery, merely gets them in the door.

Whistleblower laws are intended to encourage private citizens to hold companies accountable for wrongdoing while offering protection from retaliation.  However, there are times when the companies do retaliate against the employees for stepping up and doing the right thing.  If you have been terminated or demoted because you reported a problem, the experienced and hardworking attorneys at Barrett Law PLLC will develop a legal strategy based on the unique needs of your case.  To schedule a free initial consultation, call us at (800) 707-9577.  Our commitment to our clients means that we only get paid if we recover the compensation that you deserve.

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