Whistleblowers May Do Better Under Obama

Whistleblowers May Do Better Under Obama - 7/17/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

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Whistleblowers May Do Better Under Obama
Ben James

Securities Law 360. July 17, 2009
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EXCERPT: Whistleblower cases brought under the Sarbanes-Oxley Act don't often pan out for claimants, but some lawyers say SOX whistleblowers will fare better under the Obama administration — and that whistleblowers who bring claims under the American Recovery and Reinvestment Act of 2009 will enjoy more success than SOX claimants have. Statistics recently obtained from the U.S. Department of Labor showed that as of June 23, the Occupational Safety and Health Administration had received 154 whistleblower cases in fiscal 2009, and found only three complaints to have merit. OSHA's numbers for fiscal 2009 also showed that 28 complaints were withdrawn, 93 dismissed and 30 were settled. Of the 1,442 SOX cases filed with OSHA since 2002, 1,330 have been completed. At the OSHA level, that crop of cases has yielded 947 dismissals, 147 complaints withdrawn, 219 settlements and 20 merit findings. When cases involve multiple complainants, the determinations are counted separately, OSHA said. OSHA's merit determinations can be challenged before an administrative law judge, then before the Administrative Review Board — a panel of judges that reviews ALJ decisions — and then before a federal appeals court. But not many merits findings and settlements come out of those stages — after all, the agency has already found that many of those cases lack merit — noted Howard Radzely, a partner with Morgan Lewis & Bockius LLP and former deputy secretary of labor. Because the DOL will have more overall resources, it could spend more time on whistleblower cases and make more merits findings, particularly in cases that are close calls, Radzely said, adding that the tough economic conditions may mean increased filings as more employees are laid off. "I would definitely expect to see the merit findings and settlements number going up the next couple of years," Radzely said.

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