Assignment 2 law

Running head: WHISTLEBLOWING 1

Whistleblowing

Student’s Name

Professor’s Name

Course

Date

Whistleblowing

Key characteristics of a Whistleblower

A whistleblower refers to an employee of a company or an ex-employer who has evidence of unethical behaviors by the company or any other behavior that may not be of interest to the general public (Miceli, Near & Dworkin, 2013). A whistleblower discloses classified information about the company to a third party if the behavior violates the law or it endangers the well-being of their employee or any key stakeholders. One characteristic of whistle blowers is that they are courageous. Whistle blowing requires a lot of courage because it can be dangerous. The effects of whistleblowing are strenuous to the mind and body of the whistleblower (Miceli, Near & Dworkin, 2013). It therefore takes a strong person to become a whistleblower. Whistle blowers are also devoted to the well-being of others. They are caring and they are committed to the well-being of others even if it means losing their job, being incarcerated or even putting their own families in danger. They also have a strong belief in themselves and they stand by their words. They may be required to testify in court and provide evidence of their claims.

A recent case of whistleblowing

A recent case of whistleblowing is a June 6th, 2016 case where, Brian Shields, a former employee at Genentech filed a lawsuit against the company for violating the false claims Act. According to the whistleblower, two pharmaceutical companies, OSI Pharmaceutical LLC and Genentech Inc., provided false information to the public and health care providers about the effectiveness of a drug they released called Tarceva (U.S. Department of Justice, 2016). The drug was aimed at treating-small cell lung cancer. The two companies misinformed health care providers that the drug is effective and this potentially jeopardized the health and safety of patients.

The whistleblower’s valiant actions enabled the healthcare providers to know the truth in regards to the drug. He also made them aware of the potential dangerous consequences of using the drug. The two companies agreed to pay a sum of $67 million to settle the false claims lawsuit. The federal government took $62.6 million. The state Medicaid programs took $4.4 million while Brian was rewarded $10 million for the risk he took and the important role he played in safeguarding the health of patients and making the two companies pay for their dangerous actions (U.S. Department of Justice, 2016).

Justifying the whistleblower

Brian Shield was justified in reporting the case. The two companies are committed to proving truth information in order to safeguard the health and well-being of the general public. However, they took their own interest and made false claims about the drug to the healthcare providers in order to sell it and achieve profitability. This is unethical because it puts the health of the patients in jeopardy. It is a selfish act that can result to adverse effects. The whistleblower was therefore justified to blow the whistle as this would safeguard the health of many patients. His motive was good and he is therefore justified to report the case to the authorities.

Whistleblowers protection under the Sarbanes-Oxley Act

Whistleblowers are protected against public and private companies under the Sarbanes Oxley Act. If an employee is a whistleblower and the company retaliates against him or her after reporting an illegal or unethical behavior by the company, they have the right to file legal claims against the company (Mowrey, Cash & Dickens, 2010). The Act has diverse administrative, criminal and civil provisions that make it one of the most significant laws that protect whistleblowers. The whistleblower, under this act is protected in various ways. First, it provides a legal remedy for employees who are discharged by their employer for blowing the whistle. Second, it requires all public corporations to have an audit committee that is independent and establish a procedure through which whistleblowers can file the complaints (Mowrey, Cash & Dickens, 2010). It also sets ethical standards that encourage the attorneys to blow the whistle against a company. Finally, it criminalizes retaliation against whistleblowers. These provisions cover all employers across the nation.

References

Miceli, M. P., Near, J. P., & Dworkin, T. M. (2013). Whistle-blowing in organizations. Psychology Press.

Mowrey, M. E., Cash, L. S., & Dickens, T. L. (2010). Does Sarbanes-Oxley Protect Whistleblowers-The Recent Experience of Companies and Whistleblowing Workers under SOX. Wm. & Mary Bus. L. Rev., 1, 431.