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Compensating Whistleblowers

Working to Win Damages Awards for Whistleblowers

Setting the precedent for damages available in a corporate whistleblower case...

Kohn, Kohn & Colapinto prevailed in a ten-year battle with Georgia Power Co. in obtaining court orders mandating that wrongfully discharged senior executive Marvin Hobby be awarded over $5,000,000 in damages and equitable relief.  The company lost in its bid to block reinstatement, and was ordered to fully compensate whistleblower Mr. Hobby with back pay, calculated salary increases, vacation time, car allowances, life insurance, retirement benefits, stock options, damages for harm to his reputation and emotional distress, lost equity, parking privileges and tax penalties, among other damages.

winning damages to compensate whistleblowersIn a historic case Murphy v. IRS, KKC successfully used the 16th Amendment, for the first time in fifty years, to challenge the taxation of compensatory damages paid to a whistleblower for loss of reputation and emotional distress. Under strong pressure from the Department of Treasury the decision was reversed based on Article I taxing authority.  This case is regularly cited to by commentators as justification for providing tax relief to victims of discrimination.

In 2012, in conjunction with a qui tam whistleblower case, Khwaja v. WMATA, Shahiq Khwaja was terminated by WMATA. The Department of Transportation’s Office of Inspector General, determined that Mr. Khwaja’s disclosures were a contributing factor in his termination and that WMATA failed to show by clear and convincing evidence that it would have terminated Mr. Khwaja notwithstanding his disclosures. In a 2014 settlement, our whistleblower attorneys successfully obtained $390,000 in damages from WMATA to settle Mr. Khwaja’s wrongful termination claim. Mr. Khwaja also received approximately $996,480 as his share of the False Claims Act recovery.

Learn more about collecting damages in The Whistleblower’s Handbook: A Step-by-Step Guide to Doing What’s Right and Protecting Yourself  RULE 18: Get Every Penny Deserved.

If collecting damages is a key issue in your case, and you would like to know how one of our whistleblower attorneys can help you with your case, please complete our Contact Form.