An appeals court will allow claims to proceed against military contractor BAE Systems Inc. for allegedly retaliating against two purported whistleblowers in violation of the False Claims Act.
In an eight-page decision issued on Thursday, the U.S. Court of Appeals for the Sixth Circuit reversed an August 2013 ruling, which held that the former BAE employees had agreed to arbitrate their retaliation claims. The Sixth Circuit adopted a narrow reading of an arbitration clause in the plaintiffs’ employment agreements, finding that employees never relinquished their statutory right to sue for retaliation under the FCA.
