Reasonable belief of unlawful conduct giving rise to a whistle-blowing claim must be based on more than subjective conjecture.

The plaintiff became aware of an accounting shortfall for a client that he monitored. When he brought the issue to a supervisor, he was told not to worry about it, but he was not given an explanation or reason. The plaintiff assumed the shortfall was the result of a kickback scheme. In actuality, the shortfall had been addressed by a "handshake agreement" between the parties to which the plaintiff was unaware. Following the plaintiff's termination, he commenced a CEPA action, alleging that the actual reason for his discharge was his objection to and/or reporting of the kickback scheme. In dismissing the complaint, District Judge Wolfson concluded that the plaintiff's subjective conclusion that the shortfall was due to a nefarious plot was not objectively reasonable and, therefore, it could not support a claim.

Case Law Alerts - 2nd Quarter 2013