CFTC wants to protect whistleblowers against retaliation
The Commodity Futures Trading Commission (CFTC) has proposed regulatory changes that will give the agency the enforcement authority to punish companies that retaliate against whistleblowers. Since the whistleblower program was established in 2011, whistleblowers only recourse was to initiate a retaliation claim. . In contrast, U.S. Securities and Exchange Commission (SEC) has stressed that it will pursue companies that retaliate against whistleblowers. The CFTC stated in its Notice for Public Comments that “the Commission is taking a necessary step to end the incongruous situation where whistleblowers enjoy protection from retaliation through SEC enforcement action under the securities laws, but no such protection through Commission enforcement action under the CEA [Commodity Exchange Act].” The proposed CFTC amendments will align the Commodity Agency’s program with the tougher stance taken by the SEC and will give whistleblowers greater protection against retaliation.
Under the CFTC’s Whistleblower Program, whistleblowers may receive between 10 and 30 percent of the amount collected by the Government when they voluntarily provide the CFTC with original information about violations of the Commodity Exchange Act that leads to a successful enforcement action and monetary sanctions over $1,000,000. Earlier this year, the CFTC issued its largest award of over $10 million to a whistleblower.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, consumer class actions, shareholder derivative litigation and whistleblower (Qui Tam) litigation. The firm is headquartered in New York, and maintains offices in California, Delaware and Pennsylvania. Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, consumers and employees. To schedule a free consultation with our attorneys and to learn more about your legal rights, call our offices today at (877) 247-4292.
About T. Talyana Bromberg
Talyana Bromberg is a partner in Faruqi & Faruqi, LLP’s Pennsylvania office and chair of its False Claims Litigation group. Ms. Bromberg focuses her practice on representing whistleblowers in Medicare and Medicaid fraud cases, educational, financial, tax, defense contractors’ fraud and matters involving bribery under the Foreign Corrupt Practices Act.
Ms. Bromberg was a lead attorney representing whistleblower Ronald Streck in the lawsuits against pharmaceutical manufacturers AstraZeneca Pharmaceuticals LP, Cephalon, Inc., and Biogen Inc. relating to underpayment of Medicaid rebates, with a settlement totaling $55.5 million. She represented whistleblowers in pharmaceutical lawsuits against Abbott Laboratories related to off-label promotion and payment of kickbacks for anti-seizure drug Depakote that resulted in a $1.6 billion settlement; against GlaxoSmithKline related to unlawful marketing tactics and kickbacks for GSK drug Advair for a $1.04 billion settlement; and against Pfizer for alleged illegal promotion of its kidney transplant drug Rapamune, resulting in $257 million settlement.
The False Claims Act allows whistleblowers to sue those who commit fraud against the government and to receive between 15 and 30 percent of the recovered funds. The law covers fraud involving any government-funded contract or program, including Medicare, Medicaid, military, transportation, housing, educational, agricultural, or other program. Separate IRS, SEC and CFTC whistleblower programs cover federal tax fraud, securities and commodities fraud. Since 1986, whistleblowers have helped the government to recover more than $40 billion by bringing lawsuits under the federal and state False Claims Acts.