The Importance of Whistleblower Lawsuits and their Positive Impact on Society

​Whistleblower lawsuits are a vital tool in the fight against fraud and corruption. They allow brave individuals to come forward and expose wrongdoing, without fear of retribution. Whistleblower lawsuits also help to hold corporations and government agencies accountable for their actions. The brave individuals who do come forward may be entitled to a significant whistleblower award. In this article, we will explore the importance of whistleblower lawsuits and how they help to protect the public. We will also look at some recent examples of successful whistleblower lawsuits and the positive impact they have had.

Contact Nashville whistleblower attorney Timothy L. Miles for a free and confidential case evaluation.

What is a whistleblower lawsuit?

​A whistleblower lawsuit is a lawsuit filed by a person who reports fraud, corruption, or other illegal or unethical conduct. Whistleblower lawsuits may be filed by employees against their employers, or contractors against government agencies. A whistleblower lawsuit can lead to a settlement or verdict in the favor of the plaintiff. If the lawsuit is filed against a government agency, it may also lead to disciplinary action or termination against the guilty parties.

The importance of whistleblower lawsuits

​Whistleblower lawsuits are essential in the fight against fraud and corruption. They allow brave individuals to come forward and expose wrongdoing, without fear of retribution. Whistleblower lawsuits also help to hold corporations and government agencies accountable for their actions. In some cases, whistleblowers receive financial compensation for coming forward referred to as a whistleblower award. There are also federal and state laws designed to protect whistleblowers from retaliation. Thus, blowing the whistle can be a powerful tool for the public, as well as for the individuals who report fraud and corruption.

Recent examples of successful whistleblower lawsuits

In October 2020, the U.S. Securities and Exchange Commission ("SEC") announced an award of over $114 million to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions. The $114 million award consists of an approximately $52 million award in connection with the SEC case and an approximately $62 million award arising out of the related actions by another agency. The combined $114 million reward marks the highest award in the SEC whistleblower program’s history.
 
In September 2018, pharmaceutical company Insys Therapeutics, Inc. agreed to pay a $75 million settlement in a whistleblower lawsuit. The lawsuit was filed under the False Claims Act by two former employees. The lawsuit claimed that the company had given doctors kickbacks to write prescriptions for Subsys, an opioid painkiller. In February 2018, Uber agreed to settle a lawsuit filed by a passenger whose data had been breached in 2016. The lawsuit was filed under the Stored Communications Act, a law governing government access to electronic communications. It claimed that Uber had failed to adequately protect the passenger data.
 
In February 2018, a medical center in Texas agreed to pay $4.5 million in a False Claims Act settlement. The qui tam lawsuit was filed by a former employee who claimed that the center had billed Medicare for unnecessary psychiatric consultations. 

The positive impact of whistleblower lawsuits

​Whistleblower lawsuits have played a major role in fighting corruption and fraud in the private and government sectors. These lawsuits have resulted in several successful settlements for whistleblowers. They have also resulted in disciplinary action or termination against guilty parties. In March 2018, pharmaceutical company Novartis AG agreed to pay a $19 million fine in a False Claims Act settlement. The lawsuit, which was filed by a former employee, claimed that the company had given doctors kickbacks to prescribe Exubera, an inhaled insulin. In December 2017, a hospital in New York agreed to pay $3 million in a False Claims Act settlement. The lawsuit was filed by a former employee who alleged that the hospital had billed Medicare for unnecessary services. 7 In October 2017, a hospital in New Jersey agreed to pay $10 million in a False Claims Act settlement. The lawsuit was filed by a former employee who claimed that the hospital had billed Medicare for unnecessary services.

Conclusion

​​Whistleblower lawsuits are a vital tool in the fight against fraud and corruption. If you are thinking of blowing the whistle, contact Nashville whistleblower attorney Timothy L. Miles for a free and confidential case evaluation.

Timothy L. Miles, Esq.

Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles was recentely selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019). Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, and more.