Whistleblower Rebuffs Counterclaim for Disclosing Confidential Information
Client Alert | 1 min read | 05.20.16
In U.S. ex rel. Cieszynski v. LifeWatch Servs. (N.D. Ill., May 9), the court dismissed the defendant’s counterclaim against a former employee and FCA whistleblower, ruling that the whistleblower’s disclosure of protected patient information fell within the public policy protections for whistleblowers. As described in a post on the Whistleblower Watch Blog, there has been an increase in recent years of FCA defendants raising counterclaims based on breaches of confidentiality agreements, and this will likely remain an active area of litigation until the courts clearly define what documents an FCA whistleblower can take from an employer and how the whistleblower can use those documents to support FCA allegations.
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Is Stock-a-palooza Over? Supreme Court allows SEC to Pursue Disgorgement
On June 4, 2026, the U.S. Supreme Court unanimously held that the U.S. Securities and Exchange Commission (SEC) can continue to pursue disgorgement as an equitable remedy in securities fraud cases without showing pecuniary loss by investors. The Court’s ruling in Sripetch v. SEC resolves a split between the U.S. Court of Appeals for the Second Circuit, which concluded that the SEC must demonstrate pecuniary loss, and the U.S. Courts of Appeals for the First and Ninth Circuits, which declined to require such a showing.
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