More often than not, a fraudster employer will fire a whistleblower when the whistleblower reports the fraud to his or her employer. At the time of termination, the employer may present the employee with a severance agreement and release. An employee who is contemplating filing a whistleblower complaint should consult with Qui Tam counsel prior to signing such severance agreement. Some courts have ruled that signing such severance agreements and releases bars the employee’s wrongful retaliation under the False Claims Act. See, for instance, Higgins v. Healthsouth. In that case, the Court dismissed Ms. Higgins’ retaliatory discharge case, finding that she had released the employer from such claims as part of the severance agreement.
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