Louisiana Federal Court Allows Terminated Employee’s False Claims Act Retaliation Claim To Proceed

In 2012, an operator at an industrial facility was allegedly exposed to sulfur dioxide and sulfur trioxide gas leaking from the facility’s equipment.  He subsequently sought medical treatment and notified his supervisors of the leak and his medical treatment due to chemical exposure.  The employee also provided factual information and deposition testimony regarding the incident in an underlying qui tam action arising out of his employer’s alleged cover-up of the leak.  He later alleged retaliation in the form of harassment, disciplinary actions, and termination in a lawsuit against his former employer under the Federal False Claims Act.

Last week, the U.S. District Court for the Middle District of Louisiana denied the former employer’s motion to dismiss finding that the employee sufficiently pled that the underlying qui tam action stating a viable reverse False Claims Act cause of action and alleged sufficient facts to maintain a viable claim under the anti-retaliation provision of the False Claims Act.

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