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News

Litigation

Jun. 2, 2015

Former general counsel sues for whistleblower retaliation

The former general counsel of Bio-Rad Laboratories Inc. has sued the research company in what he calls a "classic case of whistleblower retaliation" over his termination.


By Saul Sugarman


Daily Journal Staff Writer


SAN FRANCISCO - The former general counsel of Bio-Rad Laboratories Inc. has sued the
research company in what he calls a "classic case of whistleblower retaliation" over
his termination.


The Northern District lawsuit, filed Wednesday by Sanford S. Wadler, claims his former
employer tossed him after he discovered Bio-Rad's involvement in "extensive bribery"
in Russia, Thailand, Vietnam, and China.


"Key Bio-Rad officers and directors wanted Wadler to turn a blind eye to this misconduct
or sweep it under the rug, but he refused," read the complaint, by Michael von Lowenfeldt,
a partner with Kerr & Wagstaffe LLP.


"Instead, and following his mandatory duties as the company's chief legal officer,
Wadler investigated this potential criminal activity and reported it up the ladder,"
he added.


Specifically, Wadler looked into violations of the Foreign Corrupt Practices Act in
China. Bio-Rad hired Steptoe & Johnson LLP to investigate the matter, but Wadler found
the firm's results "disappointing" and "incorrect."


He was troubled by Steptoe & Johnson's first investigation in 2013, finding inadequate
documentation of how much Bio-Rad was selling in China.


Months after Steptoe & Johnson's second investigation, and after Wadler raised concerns
about the firm's results, he was terminated in June 2013, according to the complaint.


His lawsuit names the company, its CEO Norman Schwartz and his mother Alice as defendants,
among others.


He accuses the company of retaliation and wrongful termination. Wadler v. Bio-Rad Laboratories et al., 15-CV2356 (N.D. Cal., filed May 27, 2015).


Wadler demands double back pay and interest and other damages related to lost wages,
earnings and retirement benefits. He also seeks punitive damages and money for infliction
of emotional distress.


Bio-Rad is a Hercules-based manufacturer of products that separate chemical elements
for analysis.


In 2013, the company paid $55.1 million to federal agencies to settle alleged FCPA
violations in Russia, Thailand, and Vietnam, according to Wednesday's complaint.


Von Lowenfeldt could not be reached. Linda M. Inscoe, a San Francisco-based partner
with Latham & Watkins LLP who is listed as the lead attorney defending Bio-Rad, also
could not be reached.


href="mailto:saul_sugarman@dailyjournal.com">saul_sugarman@dailyjournal.com


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