In June 2025, we secured a unanimous $27.5 million jury verdict against Dignity Health in a whistleblower case involving retaliation related to wrongful termination. Partnering with David M. deRubertis, our firm proved that retaliation against employees who raise safety concerns has real consequences.
We’ll explain what happened in our latest whistleblower retaliation lawsuit, why the verdict is considered a landmark for employees across California, and what workers can learn about whistleblower protections and remedies.
Case Overview
This case was about a senior hospital executive, Nancy Valla, who became a former employee after being pushed out for raising concerns about patient safety. We took her story to court and made sure the jury heard every detail.
Here, you will find out who the key parties were, what circumstances triggered the lawsuit, and how the events ultimately led to one of the largest whistleblower retaliation verdicts in California.
Who Was Involved in Recent Whistleblower Cases?
The central figure in this case was Nancy Valla, a former executive at St. Mary Medical Center in Long Beach, a hospital within the Dignity Health / CommonSpirit Health system. Valla had years of experience in hospital administration and took her responsibilities for patient safety seriously.
The employer, Dignity Health, is one of the largest health care systems in the United States. Its leadership was accused of ignoring repeated warnings from Valla after multiple patient suicides occurred at the hospital’s Long Beach campus.
- Employee (Nancy Valla): Raised internal safety concerns.
- Employer (Dignity Health): Allegedly retaliated after those concerns threatened the hospital’s public image.
This combination of a dedicated employee advocating for safety versus an extensive corporate health system prioritizing optics made the case resonate deeply with the jury.
What Led to the Lawsuit?
The lawsuit arose after a series of suicide deaths at St. Mary Medical Center. Valla consistently pushed for the installation of protective barriers at a high structure on the hospital campus, citing global research showing that physical barriers prevent suicide attempts and save lives.
Despite the seriousness of her concerns, trial testimony revealed that hospital executives laughed off the proposals, dismissing them as too costly and unattractive. Valla even offered to pay for the barriers herself—an offer leadership rejected because it might “make them look guilty.”
Her advocacy did not stop there. Valla also reported a range of serious patient‑safety issues, including dangerous “end‑of‑life” defibrillators and malfunctioning anesthesia machines, both essential for saving lives in emergencies. She further raised alarms about contaminated surgical instruments that were not being properly sterilized before use.
Rather than address these escalating concerns, hospital administrators retaliated. Valla’s position was publicly posted, her photo was circulated to security, the locks to her office were changed, and her email and computer access were cut off—a sequence of actions that left little doubt she was being pushed out for speaking up.
These actions culminated in her termination, prompting the lawsuit.
The jury unanimously found that Dignity Health’s conduct violated California whistleblower protection laws, awarding $5 million in economic damages and $22.5 million in compensatory damages, for a total of $27.5 million.
Why This Verdict Is a Landmark
The jury delivered a unanimous award of $27.5 million, divided into two major parts:
- $5 million in economic damages: Covering lost wages, benefits, career setbacks caused by the termination, and harm to the whistleblower’s future employment opportunities.
- $22.5 million in compensatory damages: Recognizing the emotional distress, reputational harm, and personal suffering tied to the retaliation.
In California, many whistleblower claims settle quietly or result in verdicts under $10 million. Here, the scale alone made headlines, but the reasoning behind the award matters even more.
And how does it compare to other cases? Most whistleblower verdicts fall in the six- or low seven-figure range, with many settling before trial. Reaching eight figures is rare, which makes this $27.5 million award stand out as extraordinary.
At the end, this verdict sends a straightforward warning across the state:
- For employees, this case proves that speaking up can lead to justice.
- For employers, it’s a reminder that retaliation is not just unlawful; it’s financially devastating.
Attorneys Behind the Win
Our team handled the day-to-day preparation, evidence presentation, and direct connection with the client, while David brought decades of trial skills that helped frame the story in a way jurors could not ignore. By uniting these strengths, we gave our client the strongest possible voice in court.
Hershey Law’s Role
We are a California-based employment law firm known for representing whistleblowers, wrongfully terminated employees, and workers facing discrimination. In the Valla v. Dignity Health case, Hershey Law’s attorneys were central in:
- Building the record: Collecting documents, internal reports, and testimony showing how safety concerns were raised and ignored.
- Framing the retaliation claim: Demonstrating that the employee’s termination was directly tied to her advocacy for patient safety.
- Telling the client’s story: Presenting a straightforward and human narrative to the jury so that the case was not just about legal codes but about a professional risking her career for patient safety.
Hershey Law is deeply committed to professional responsibility, ensuring ethical advocacy and accountability when representing whistleblowers.
What sets us apart is our balance between trial strength and client support.
David M. deRubertis’s Expertise
David M. deRubertis is widely recognized as one of California’s top trial lawyers, with a history of precedent-setting verdicts. His contribution in this case included:
- Trial leadership: Guiding the presentation of evidence and cross-examinations.
- Strategic vision: Linking the whistleblower’s story to broader patterns of corporate accountability.
- Credibility with juries: Having previously secured one of the largest employment law verdicts in state history, his reputation reinforced the seriousness of the claims.
The court noted that deRubertis’s approach effectively highlighted the pattern of institutional disregard for safety concerns, which was central to the jury’s understanding of the case.
As deRubertis explained after the trial, “This case was always about more than one person’s job. It was about whether an institution could ignore repeated warnings about patient safety.”
That framing helped jurors view the verdict not just as compensation but as a corrective measure against systemic negligence.
Together, we formed a partnership that showcased the value of collaboration: combining local firm dedication with nationally recognized trial expertise.
Legal Protections for Whistleblowers in California
Whistleblower protections in California exist to shield employees who raise safety or compliance concerns from retaliation. These protections are established and enforced under California state law. These laws are among the strongest in the country and ensure that workers do not have to choose between protecting the public and protecting their livelihood.
What Is Whistleblower Retaliation?
Whistleblower retaliation occurs when an employer punishes an employee for reporting illegal activity, safety concerns, or violations of public policy to a federal bureau . That punishment can take many forms:
- Termination or demotion after reporting misconduct.
- Harassment or hostility in the workplace.
- Reduction in hours or pay is designed to push an employee out.
- Blacklisting that harms the employee’s reputation in the industry.
Retaliation can also create a chilling effect on other employees who witness or are aware of the situation, discouraging them from reporting misconduct or supporting the whistleblower.
Think of it this way: if an employee raises a safety red flag and suddenly finds their career derailed, retaliation may have occurred. In the case against Dignity Health, the whistleblower wasn’t punished for poor performance; she was punished for insisting on patient safety.
Key California Whistleblower Laws
California has some of the strongest whistleblower protections in the country. The most central statute is California Labor Code §1102.5, which makes it unlawful for an employer to retaliate against an employee who reports suspected violations of law or workplace safety concerns.
This law covers both internal reports (such as raising issues with supervisors or HR) and external reports made to a government agency for investigation.
Other California laws that support whistleblowers include:
- Labor Code §6310 protects workers who report unsafe working conditions.
- Labor Code §98.6 forbids retaliation against employees who assert their workplace rights, including wage claims.
- California False Claims Act allows employees to take legal action when they observe fraud against the state or local government.
Why This Case Matters for Employees
This verdict represents a shift in how California juries view retaliation, accountability, and occupational safety. For employees across the state, the message is clear: standing up for what’s right can be protected and rewarded. Employees are protected when they report concerns based on a reasonable belief of wrongdoing.
Strengthening Whistleblower Rights
The $27.5 million award sends a strong signal to both employees and employers.
- Recognition of harm – The jury acknowledged the emotional and financial toll retaliation takes on workers.
- Accountability at scale – By holding a primary healthcare system responsible, the verdict reinforces that size or influence cannot shield employers from justice.
- Reinforcement of state laws – California’s whistleblower protections, especially under Labor Code §1102.5, gained visibility and credibility through this case. California law covers a broad range of protected disclosures made by employees.
For workers in hospitals, tech companies, government, or any other sector, this means the law is actively working to protect them when they raise safety, compliance, or ethical concerns.
Lessons for Healthcare Workers
In the Dignity Health case, Nancy Valla’s persistence in reporting patient safety issues and her legal team’s thorough evidence made it possible to show a direct connection between her advocacy and the employer’s retaliation.
“This case was always about doing the right thing,” attorney Brennan Hershey said after the verdict. For workers, that means your courage matters, and the law is there to support you.
- Recognize retaliation early: Demotions, suspensions, hostile treatment, or terminations that happen after raising concerns are red flags.
- Document everything: Emails, meeting notes, and HR communications often become critical evidence. Make sure your reports are made in good faith—that is, honestly and based on a reasonable belief of misconduct—to ensure legal protection.
- Act quickly: Waiting too long can make claims more complicated to prove or even limit your right to file under state timelines.
- Seek legal advice immediately: Employment lawyers can confirm whether what you’re experiencing qualifies as unlawful retaliation.
Impact on Employers
This verdict also delivers a warning to every employer in California: retaliation is costly, both financially and reputationally, and it does not override attorney client privilege. Employers can be held liable if the protected activity was a contributing factor in the decision to retaliate, even if it was not the sole reason. Therefore, employers who ignore or punish legitimate concerns expose themselves to jury verdicts that can reshape their organizations.
The Importance of Compliance
When employees raise issues about safety, ethics, or legal obligations, companies have two options:
- Address the concern – Investigate, correct, and document the resolution.
- Ignore or retaliate – Risk lawsuits, negative publicity, and potential multi-million-dollar awards. In many cases, employers may first be subject to an administrative process through a government agency before litigation proceeds.
The Dignity Health verdict showed what happens when leadership chooses the second path. Instead of strengthening safety protocols after repeated warnings, the hospital dismissed concerns.
The result? It’s $27.5 million in damages, national headlines, and long-term scrutiny of the organization. Therefore, a single decision to retaliate can escalate into one of the largest verdicts of the year.
Looking for Workplace Protections Against Retaliation?
If you’ve raised safety concerns or reported misconduct at work, you should be able to trust that your employer will protect you—not punish you. Unfortunately, too many whistleblower retaliation cases show the opposite, with workers facing demotion, exclusion, or termination after making a protected disclosure. At Hershey Law, we help employees recognize the safeguards they are entitled to under state and federal laws.
Here are the protections you should expect in a safe workplace:
- Confidential reporting channels – Employees should have access to secure, anonymous hotlines or compliance systems for reporting safety violations or fraud involving federal funds.
- Independent investigations – Complaints must be handled by neutral parties, not managers with conflicts of interest. A failure to investigate properly can strengthen a whistleblower retaliation lawsuit in district court or federal court.
- Manager training and accountability – Supervisors should understand that any adverse action against whistleblowers—such as demotion, harassment, or wrongful termination—may be considered unlawful retaliation under the Whistleblower Protection Enhancement Act, the California False Claims Act, or the Sarbanes-Oxley Act.
- Transparency and follow-through – Employers must show they are addressing complaints fairly and lawfully. Retaliation not only violates whistleblower laws but can also lead to punitive damages and significant liability in administrative proceedings or civil rights act claims.
If you are a former employee, temporary worker, or federal employee who has faced retaliation for raising concerns, you may have legal remedies under both state law and federal law. Whether your case involves government contracts, patient safety, tax fraud, or compliance officer reports, Hershey Law has the experience to represent you in whistleblower cases before state courts, federal juries, or administrative agencies.
As Brennan Hershey often reminds clients: “Retaliation has consequences, and the truth always prevails.” If your former employer has taken action against you for protected conduct, Hershey Law can help you pursue compensatory damages, attorney fees, and restoration of your future employment opportunities.
Remedies in Whistleblower Retaliation Cases
When a California jury finds that retaliation occurred, it results in financial and legal remedies designed to make the employee whole and to punish the employer for misconduct. In Valla v. Dignity Health, the court held Dignity Health liable for retaliation and awarded substantial damages.
The $27.5 million awarded in Valla v. Dignity Health is one of the clearest examples of how wide-ranging these remedies can be.
Common Types of Damages
California law allows whistleblowers to recover different categories of damages depending on the harm they suffered:
Lost Wages (Economic Damages)
Covers salary, bonuses, benefits, and retirement contributions the employee lost due to retaliation. In Nancy Valla‘s case, the jury awarded $5 million in economic damages, reflecting years of missed earnings and lost opportunities for career advancement. As a result of the verdict, the whistleblower received a substantial monetary award, highlighting the incentive for reporting wrongdoing.
Emotional Distress (Compensatory Damages)
- Whistleblowers often face humiliation, reputational harm, anxiety, and loss of professional identity.
- The jury awarded $22.5 million in compensatory damages for the severe personal and emotional toll.
- Courts recognize that the psychological impact of retaliation can be as damaging as financial losses.
Attorneys’ Fees and Litigation Costs
California’s whistleblower laws allow prevailing employees to recover the cost of hiring legal counsel. This ensures that workers can pursue claims even against billion-dollar corporations without being overwhelmed by legal expenses.
Punitive Damages (In Certain Cases)
Designed to punish employers for egregious or intentional misconduct. While not awarded in every case, when a company shows reckless disregard for employee safety or rights, punitive damages can multiply the financial impact.
Whistleblower Resources and Support
Whistleblowers are essential to maintaining integrity and accountability in both public and private organizations. However, reporting wrongdoing—whether it involves safety violations, fraud, or misuse of federal funds—can be intimidating and may expose employees to the risk of retaliation. That’s why having access to reliable whistleblower resources and support services is critical for anyone considering making a protected disclosure.
Where to Find Help and Guidance
If you’re thinking about reporting misconduct or have already raised concerns, it’s important to know where to turn for help. Several government agencies, non-profit organizations, and law firms specialize in supporting whistleblowers through every stage of the process.
- Department of Justice (DOJ): Handles whistleblower complaints under the federal False Claims Act, which allows individuals to report fraud against the federal government and potentially share in any recovery.
- Securities and Exchange Commission (SEC): Operates a dedicated whistleblower program for reporting securities law violations, offering both protection and potential financial rewards.
- National Whistleblower Center & Government Accountability Project: These non-profit organizations provide education, advocacy, and direct support to whistleblowers nationwide.
- California False Claims Act: In California, employees can report fraud or misuse of state and local government funds under the California False Claims Act. This law not only protects whistleblowers from retaliation but also allows them to file lawsuits on behalf of the government and receive a portion of any recovered funds.
- California Department of Justice: Offers a dedicated unit for handling whistleblower complaints and can provide guidance on state-specific whistleblower protections.
Whether you’re dealing with a possible violation of the law, reporting safety violations, or suspecting fraud involving government contracts, these resources can help you understand your rights and the steps involved in whistleblower cases.
Support Services for Whistleblowers
Facing retaliation—such as termination, demotion, or workplace hostility—can be overwhelming. Fortunately, a range of support services exists to help whistleblowers protect themselves and navigate the legal process.
- Legal Assistance: Law firms experienced in whistleblower protection, such as those specializing in the False Claims Act or the Whistleblower Protection Enhancement Act, can offer crucial guidance. Many firms, including Hershey Law, provide free consultations and represent only employees, never corporations. We can help you file whistleblower complaints, understand your rights under state and federal laws, and represent you in district court or federal court if necessary.
- Advocacy and Counseling: Organizations like the Whistleblower Support Center and the National Whistleblower Center offer counseling, advocacy services, and emotional support to help whistleblowers and their families cope with the stress and uncertainty that can come with protected activity.
- Federal Employee Protections: The Whistleblower Protection Enhancement Act strengthens protections for federal employees, giving them the right to appeal adverse actions and seek remedies through administrative proceedings or the Merit Systems Protection Board.
- State and Federal Law Guidance: Whether you are protected under the California False Claims Act, the federal False Claims Act, or other whistleblower laws, support services can help you understand the nuances of your case and ensure your disclosures are protected.
Remember, you don’t have to face whistleblower retaliation alone. By reaching out to the right resources—whether for legal advice, emotional support, or advocacy—you can safeguard your rights and take meaningful action against wrongdoing.
Want to See More Results Like This?
The $27.5 million verdict against Dignity Health is one of the most significant single-plaintiff employment retaliation cases in California, but it’s not Hershey Law’s only courtroom success. Hershey Law is also experienced in handling district court action cases involving retaliation.
Here are some notable results:
- Confidential Settlement for $100,000 against City Employer for Sexual Harassment Allegations
- Confidential Settlement for $120,000 for Pregnancy Discrimination Allegations
- Confidential Settlement for $120,000 for Racial Discrimination Allegations
At Hershey Law, we believe no case is too big or too small when it comes to protecting workers across California. To explore more outcomes we’ve secured for clients, visit Our Results page.
Need Help With a Retaliation Case?
If you’ve faced retaliation for doing the right thing, our recent win shows exactly what’s possible when you have the right legal team behind you. Remember, nondisclosure agreements should never be used to prevent employees from reporting misconduct or safety issues. We’re ready to listen to your case and fight for you.
Request a free consultation today and let us help you take the next step.
Frequently Asked Questions
What are whistleblower cases?
Whistleblower cases involve employees reporting illegal, unsafe, or unethical conduct at work and facing retaliation afterward. For example, these cases may include reporting false statements made by employers, such as misleading or inaccurate information related to government-funded translation services.
How long do I have to file a claim?
Most California whistleblower retaliation claims must be filed within three years, but deadlines vary by situation. In some cases, deadlines may be affected by court determined factors, such as judicial findings on procedural or legal issues.
Do I have to go to court?
Not always. Many cases settle through negotiation, but Hershey Law is trial-ready if litigation is needed.