Siemens Wins Dismissal of Ex-Compliance Officer's Lawsuit

Siemens AG (SIE), Europe’s largest engineering company, won dismissal of a suit by a former compliance officer in its China unit who claimed he was fired after exposing evidence of hospital kickbacks.

U.S. District Judge William Pauley in Manhattan today threw out a suit by Meng-Lin Liu, ruling that whistle-blower protections in the Dodd-Frank Act don’t apply outside the U.S.

“There is simply no indication that Congress intended the Anti-Retaliation Provision to apply extraterritorially,” Pauley wrote in an opinion today.

Liu filed a whistle-blower complaint in January, claiming he uncovered a kickback scheme in which Siemens Ltd. China submitted inflated bids to sell medical diagnostic and scanning equipment to public hospitals in China and North Korea, and sold the equipment at reduced prices to intermediaries that charged the hospitals the full bid price.

Liu, who said he was hired by Munich-based Siemens in 2008, claims he was fired after presenting evidence of the scheme to a senior executive at Siemens’ China unit.

Pauley dismissed the suit, denying Liu’s request that he be permitted to file an amended complaint. The judge ruled that because the law didn’t apply to Liu’s case, amendment would be futile.

The case is Liu v. Siemens AG, 13-CV-317, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in New York at rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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