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Posts Tagged ‘whistleblower’

Another High Profile Whistleblower Suit

Friday, January 15th, 2010

In recent posts, I’ve discussed how silent problems can become whistleblower lawsuits. The few we hear about are generally high profile, with names like ADM, Toyota and  Pfizer attached to them, which I discuss here, here and here. A few of the points I raise include:

 

  1. I’m convinced that whistleblower protections and rights will continue to gain in stature and strength under this administration. 
  2. I believe the whistleblower will become a primary tool for law enforcement in the future. In effect, the whistleblower becomes the low cost alternative to the investigative task force. 
  3.  The whistleblowers role of exposing silent problems in organizations will grow in importance in the future.

Well, another high profile whistleblower suit surfaced today, this time aimed at Johnson & Johnson, a large pharmaceutical company. The Huffington Post reports, Federal prosecutors said Friday that health care giant Johnson & Johnson paid tens of millions of dollars in kickbacks so nursing homes would put more patients on its blockbuster schizophrenia medicine and other drugs.

In a complaint filed Friday, prosecutors said J&J paid rebates and other forms of kickbacks to Omnicare Inc., the country’s biggest dispenser of prescription drugs in nursing homes. Prosecutors allege Omnicare pharmacists then recommended that nursing home patients with signs of Alzheimer’s disease be put on the powerful schizophrenia drug Risperdal, which was later found to increase risk of death in the elderly.

The allegations are in a complaint filed by the U.S. Attorney in Boston, whose office has joined two whistle-blower cases. One was filed in 2003 by a former Omnicare pharmacist in Chicago, Bernard Lisitza, who alleges he was fired after he challenged the Risperdal kickbacks and other improper practices at the company. The other was filed by former Omnicare financial analyst David Kammerer in 2005, after he resigned from the company.

The source of most whistleblower lawsuits eminate from silent problems, which are problems that have been avoided, neglected, gone unnoticed or are being intentionally silenced. Unless these problems are caught and dealt with early, silent problems eventually become toxic and can become game changers. The potential impact on the organization - huge. Even large corporations like Johnson & Johnson are not immune from its wrath.

Bottom Line: As the economy rebounds, many companies will simply be unable to participate in the recovery due to the silent problems inside their organization.

We’re Not Running Out of Whistles - Part 2

Sunday, October 4th, 2009

As a child, I was afraid of the boogeyman, a make believe character often used to make children behave. Well I’m wondering, are you afraid of the whistleblower? If you’re a business leader and you aren’t, you should be. After all, the whistleblower is growing in stature and potentially more dangerous to our businesses as we speak. A decade ago, the whistleblower was a lonely spot indeed, however that is not the case today. In Part 1, I noted,

  1. I’m convinced that whistleblower protections and rights will continue to gain in stature and strength under this administration. 
  2. I believe the whistleblower will become a primary tool for law enforcement in the future. In effect, the whistleblower becomes the low cost alternative to the investigative task force. 
  3.  The whistleblowers role of exposing silent problems in organizations will grow in importance in the future.

If I’m correct, business leaders must put in place systems that prevent whistleblower lawsuits from occurring in the first place. In essence,businesses must put in place systems that address silent problems  early in their evolution, because whistleblower lawsuits eminate from silent problems. Yes, the problems that are being avoided, neglected, are going unnoticed or are being intentionally silenced are the source of all whistleblower lawsuits! Therefore, companies must put in place systems that identify silent problems. Here are a few ideas to go down that road.

  1. Educate your employees about silent problems, and how they impact business performance, culture, communication… 
  2. Create a feedback system where employees, customers and vendors can report the occurrence of silent problems.
  3. Create a silent problem task force that is responsible for identifying, following up on and solving silent problems before they become toxic.
  4. Work with an independent 3rd party vendor where silent problems can be submitted and dealt with anonymously.
  5. Create a culture where silent problems become “Job 1.”

The role and relevance of silent problems in organizations is growing in importance every day. On occassion, they may be a mere distraction. Most of the time, they have a direct and negative impact on business performance. And every once in a while, they can throw a mighty blow, which could become a fatal Without Warning event. At the very least, silent problems are dangerous and cannot be overlooked.

We’re Not Running Out of Whistles - Part 1

Tuesday, September 29th, 2009

The whistleblower. A conduit to justice or a path to humility and dispair? What rights and protections should a whistleblower have? Is the role of the whistleblower gaining or declining in importance? Is the whistleblower the villain, or the victim?

From my perspective, the whistleblower exists for one reason, and one reason alone - to expose and make visible a silent problem. Yes, the silent problem type that is being intentionally silenced (as noted in my book, Without Warning). I write in the chapter,” The Whistleblower,”

In most stories, a major character is confronted with a dilemma, often the challenge between “Doing what’s right” and “Doing the right thing.” The tension between these two is real and visible, and while the desired outcome is clear, the means to the outcome is sketchy and treascherous at best. And the dilemma often feels bigger that life itself. Such is the contentious landscape of the whistleblower.

In a world that has been thrown upside down in the past year, the whistleblower is slowly gaining stature and credibility, because the laws protecting the whistleblower are slowly gaining strength. And this is important, because without laws protecting the whistleblower, the risk/reward ratio is simply too great. This perspective is gaining strength, which is illustrated over at the Whistleblowers Protection Blog. Here are but a few of the captions that illustrates the role and importance of whistleblowers.

Stephen M. Kohn, Executive Director of the National Whistleblowers Center (NWC), is in Montenegro this week calling for enactment of whistleblower protections as a key component of transparency. 

Attorney Dean Zerbe, senior counsel to the National Whistleblowers Center, told Reuters and the ABA Journal that he hopes publicity of this settlement (Pfizer’s Bextra) will encourage other whistleblowers to come forward with information about fraudulent marketing. “The use of whistleblowers has really opened up the keys to the kingdom in terms of what’s going on in these companies,” 

I’m convinced that whistleblower protections and rights will continue to gain in stature and strength under this administration. I believe the whistleblower will become a primary tool for law enforcement in the future. Let me state it again, the whistleblower will become a primary tool for law  enforcement. Think about it. In an era of exploding budget deficits, the whistleblower becomes law enforcements low cost means to enforcing the statutes and laws already on the books. In effect, the whistleblower becomes the low cost alternative to the investigative task force. And organizations that have silent problems will be at risk of the whistleblower in the future.

Bottom line: The whistleblowers role of exposing silent problems in organizations will grow in importance in the future. How organizations guard against this risk is critically important, and will be discussed in Part 2.

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