Common Types of Whistleblower Cases
There are many different types of whistleblower cases. Here are a few of the types our team has experience handling:
Data Privacy and Security
Employees in tech, healthcare, finance, and government often face challenges when reporting data violations. While the California Consumer Privacy Act lacks specific protections, other laws shield whistleblowers from retaliation for exposing illegal practices.
Insurance Fraud
California law protects those who report insurance fraud, including false claims and kickbacks. Whistleblowers may receive a portion of the recovered funds, with the potential for treble damages and penalties.
Tax Fraud
Finance and accounting employees can report tax fraud under the IRS’s whistleblower regulations, with rewards if the disputed amount exceeds $2 million. The agency has awarded over $500 million in such cases.
Medicare Fraud
Healthcare workers can report Medicare fraud to the Department of Health and Human Services Office of Inspector General. Successful whistleblowers may receive 15%–25% of the government's recovery for exposing false billing or unnecessary services.
Government Contractor Fraud
Contractors who defraud the government can be reported to the appropriate authorities. Whistleblowers penalized for exposing substandard services or illegal activities may be reinstated, receive double back pay, and be entitled to legal damages.
Securities Law Violations
Employees who report securities fraud or insider trading to the U.S. Securities and Exchange Commission (SEC) may receive 10%–30% of monetary sanctions exceeding $1 million, a right protected by the Dodd-Frank Act.
Foreign Corrupt Practices
Under the Foreign Corrupt Practices Act (FCPA), reports of bribery and corruption to the SEC can result in monetary rewards for whistleblowers if the sanctions exceed $1 million.
Commodity Market Fraud
Reporting market manipulation or fraud to the Commodity Futures Trading Commission (CFTC) can yield monetary rewards similar to those under the SEC Whistleblower Program.
Unsafe Working Conditions
Finally, employees who report unsafe conditions to OSHA are shielded from retaliation. Such reports can involve hazardous materials, dangerous machinery, or health code violations.
How to Start the Whistleblowing Process
If you’ve been made aware of unlawful or corrupt actions at work, consider filing a complaint with the California State Auditor. Here’s how:
1. Gather Evidence
Collect as much information, documentation, and evidence about your employer’s violations as possible. Delaying this step may result in the loss or alteration of crucial evidence.
2. Consult an Attorney
Before filing your complaint, consult a qualified Los Angeles whistleblower lawyer. An attorney can help review your evidence, gather additional documentation, and present the information effectively.
3. File Your Complaint
With your whistleblower attorney’s assistance, you can file your complaint with the California State Auditor, providing the evidence you collected to support your case. Strong evidence will increase the likelihood of the State Auditor addressing the violation.
What Is the Average Settlement for Whistleblower Retaliation?
Understanding the potential financial outcomes in whistleblower retaliation cases is essential for anyone considering taking action. Settlements and award amounts can vary significantly based on several factors, including the nature of the case, the severity of the retaliation, and the laws involved.
Average Settlement Amounts
The settlement in a whistleblower retaliation lawsuit represents a willingness on the part of the defendant to address the plaintiff’s grievances or losses with a financial award. This is often done to avoid the uncertainty of a trial.
Some of the factors that can influence settlement amounts include:
- The severity of retaliation: The harsher the retaliation (e.g., wrongful termination, demotion, harassment), the higher the potential settlement
- Economic losses: Repayment of lost wages, future income, and lost benefits
- Emotional distress: Compensation for pain and suffering due to emotional distress caused by the employer’s actions
- Legal fees: Reimbursement for court costs and attorney fees incurred during the legal process
Settlements can range widely, from $50,000 to over $1 million, depending on the specifics of the case.
Whistleblower Rewards
In addition to settlements, whistleblowers may receive financial rewards if their disclosures lead to significant recoveries for the government. Here’s what to know about these rewards:
Qui Tam Cases
Whistleblowers in qui tam lawsuits, in which the plaintiff sues on behalf of the government, can receive 15%–30% of the recovered amount. The percentage depends on the whistleblower's role in providing key information and whether the government intervenes in the case.
SEC and CFTC Programs
Similarly, whistleblowers who report securities or commodities fraud may receive 10%–30% of the recovered amount if it exceeds $1 million. The exact award comes down to the quality of the information provided and the whistleblower's assistance in the ensuing investigation.
IRS Whistleblower Program
Whistleblowers who report tax fraud involving amounts over $2 million can also receive percentage-based rewards, often resulting in substantial payouts.
