Factors to Consider to Maximize the Whistleblower’s Recovery
Whistleblowers who disclose fraud to their employers or government agencies often suffer retaliation. Whistleblower retaliation takes a serious toll both financially and emotionally, including an inability to pay living expenses, reputational harm, alienation, blacklisting, and emotional distress. And in a recession, retaliation could increase as employers use the pretext of cost-cutting to terminate whistleblowers. Whistleblower protection laws can provide a potent remedy, but navigating the maze of federal, state, and common law claims can be challenging. It is crucial to assess all potential remedies, including potential whistleblower rewards claims, and develop a strategy to achieve the optimal outcome. Key issues to consider when assessing potential claims include the scope of protected whistleblowing, the burden of proof, the damages that a prevailing whistleblower can recover, the forum where the claim would be litigated, and whether the whistleblower may qualify for a whistleblower reward.
Identify the Federal or State Law that Protects the Whistleblower’s Disclosure
There is no catch-all federal whistleblower law for private sector workers that protects disclosures of unlawful conduct. Instead, federal whistleblower protection laws protect specific types of disclosures, such as disclosures about tax fraud, securities fraud, procurement fraud, or consumer financial protection fraud. Examples include:
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