Proposition 22, California’s voter-approved ballot measure that allowed rideshare and delivery network companies like Uber, Lyft, and DoorDash to classify drivers as independent contractors rather than employees, should remain state law, a divided three-judge appellate panel ruled last month. The law had been struck down in 2021 by a lower court, but the state appealed. Prop 22, also known as the Protect App-Based Drivers and Services Act, is a 2020 ballot measure that received heavy … [Read more...]
Annual False Claims Act Report Shows Success of Non-Intervened Whistleblower Cases
The Department of Justice last month reported its False Claims Act report for fiscal year 2022, highlighting more than $2.2 billion in settlements and judgments, and the second-highest number of settlements in history. But even more revealing were figures that show the importance of non-intervened whistleblower cases. That is, lawsuits filed by whistleblowers under the False Claims Act that federal prosecutors declined to intervene in, leaving the whistleblowers and their attorneys, like … [Read more...]
Supreme Court Will Hear Fraud Loophole Case That Goes to the Heart of the False Claims Act
The Supreme Court will hear arguments this spring about the “biggest threat” the False Claims Act has faced since it was modernized four decades ago. It’s an issue that could undercut the FCA’s ability to hold bad actors accountable and recover taxpayer money—$72 billion and counting since the statute was revamped in 1986. The issue arose from the Seventh Circuit’s decision in U.S. ex rel. Schutte v. SuperValu Inc. nearly two years ago. That ruling defines the FCA’s knowledge of fraud … [Read more...]
Here’s What California Law Banning Forced Arbitration Being Struck Down Means for Workers
California employers can require workers to sign mandatory arbitration agreements as a condition of employment following a U.S. Court of Appeals ruling last month. The Ninth Circuit ruled that California Assembly Bill 51 banning “forced arbitration” clauses is preempted by federal law, the Federal Arbitration Act. The bill attempted to work around the FAA, saying existing arbitration agreements were enforceable but that new employees must be given the choice of signing one. AB 51 would … [Read more...]
Whistleblower 101: How to Report Financial and Securities Fraud
Following the 2008 financial collapse, Congress established incentivized whistleblower programs similar to the qui tam provisions in the False Claims Act, creating powerful new tools for enforcing securities and commodities laws. The Dodd-Frank Wall Street Reform and Consumer Protection Act created whistleblower programs at the Securities and Exchange Commission (SEC) and at the Commodities Futures Trading Commission (CFTC) that started in 2011, when the new regulations enforcing the law took … [Read more...]
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