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French Corporate Environment Not So Whistleblower-Friendly

Client Alert | 1 min read | 01.09.06

It appears that the French government has a very different philosophy from that of the U.S. government when it comes to employee whistleblowers. As the attached article (http://www.crowell.com/pdf/Newsroom/ DataProtection_Dhont.pdf) discusses in depth, far from seeking to encourage and reward whistleblowing, French law is affirmatively concerned that the practice may abuse individuals' privacy and data-protection rights, with the result that in the past year, French regulators and courts have struck down Sarbanes-Oxley-inspired efforts by several American companies to implement ethics hotlines for their French employees, and the most recent French regulatory guidance permits such hotlines only under limited circumstances, and with appropriate safeguards to prevent defamation and protect privacy.

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Client Alert | 3 min read | 11.21.25

A Sign of What’s to Come? Court Dismisses FCA Retaliation Complaint Based on Alleged Discriminatory Use of Federal Funding

On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future....