Whistleblower News from the Inside - August 12, 2014

By the C|C Whistleblower Lawyer Team

SEC sues Kansas for bond fraud — Federal regulators claim that the Kansas Development Finance Authority defrauded investors by bringing $273M of bonds to market in 2009 and 2010 without disclosing that its pension system was deeply underwater and investors ran a risk of not being fully repaid.  Dealbook

Second Circuit rules against fired whistleblower in SOX case — The former engineer for AECOM Technology Corp. was allegedly fired for blowing the whistle on safety standards, but the court ruled that he did not have a Sarbanes-Oxley whistleblower retaliation claim because he failed plausibly to plead a link between the company’s alleged misconduct and a violation of federal securities and fraud statutes.  Bloomberg BNA

Texas settles Medicaid fraud case for $19.5 million — The settlement with Taro Pharmaceuticals resolves allegations that the company fraudulently reported inflated drug prices to the Medicaid program.  Texas

NY goes after payday lenders — State prosecutors file criminal charges against a dozen payday loan companies and their owner, Carey Vaughn Brown, accusing them of enabling payday loans that flout the state’s limits on interest rates.  NYT

Whistleblower sues Maine mental health clinic — Linda Perry, a former employee of Oxford County Mental Health Services, is suing the company under the Maine Whistleblower Protection Act, claiming she was fired in retaliation for raising concerns about the company’s delivery of patient care.  Sun Journal

Pennsylvania hospital worker sues over whistleblower retaliation — Joanne Cleighton, a former employee of Abington Memorial Hospital, claims that she was fired after complaining to supervisors about lab technicians allegedly doctoring orders for blood work to support false claims for Medicare reimbursement.  Pennsylvania Record