Confidentiality and The Seal

In Second-Ever Enforcement Action of Its Kind, SEC Stands with Whistleblower Against Company’s Attempt to Muzzle Reporting

Imagine that, after you invest in a company, you start to smell a rat. After you try to alert other investors or report what you believe is a fraudulent scheme, the company you invested in draws up an agreement that conditions your shareholding on a prohibition on speaking with regulatory agencies. If it seems illegal, that’s because it is. Yet that’s exactly what online auction and memorabilia company Collectors...

Whistleblower Suit Revived by Third Circuit Despite Settlement in Related State Court Action

In United States ex rel. Jean Charte v. American Tutor, Inc., the Court of Appeals for the Third Circuit reversed dismissal of a whistleblower’s qui tam action under the False Claims Act, giving the whistleblower the right to pursue her claims. The district court had dismissed the action under state law res judicata principals, because the relator had settled a defamation action brought in state court against her by...

Washington Attorney Charged After Attempting to Sell Sealed FCA Suit

By the C|C Whistleblower Lawyer Team A lawyer was arrested January 31 in the lobby of a California hotel where he was trying to collect over $300k for selling a copy of a sealed FCA complaint. The complaint, brought by a whistleblower on behalf of the U.S. government, was under seal to allow the government time to investigate before notifying the company that a lawsuit had been filed against it. The Washington...

Lance Armstrong’s Legal Woes Mount as Justice Department Considers Joining Fraud Case

By Jason Enzler A False Claims Act complaint filed against Lance Armstrong by former teammate Floyd Landis has leaked, despite the fact that it was filed under seal and the Department of Justice has not publically decided whether it will intervene.  Although the DOJ was expected to make that decision last Thursday, there have been widespread reports that the decision would be postponed because DOJ officials are...