Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

NJ Supreme Court to Decide Extent of CEPA Whistleblower Protections

Author: Joel N. Kreizman

Date: June 30, 2014

Key Contacts

Back
CEPA Whistleblower

The Facts of the Case

The Supreme Court of New Jersey recently agreed to consider Lippman v. Ethicon. The issue before the court is whether a plaintiff who reports conduct as part of his or her job is entitled to the whistle-blowing protections afforded under the Conscientious Employee Protection Act (CEPA).

Plaintiff Joel S. Lippman, M.D. filed a complaint against his former employer, defendant Ethicon, Inc., a subsidiary of Johnson & Johnson, Inc., for CEPA violations. He specifically alleged that he was terminated from his position as the vice president of medical affairs because he consistently advocated positions that favored the recall of products that, in his professional opinion, were dangerous to the public.

In defense of the suit, Ethicon maintained that Lippman was terminated because he had an inappropriate relationship with someone who worked directly for him. It further argued that Lippman’s acts did not constitute whistle-blowing activities under CEPA because they were part of his job-related duties.

The Appellate Division Decision

The Appellate Division overturned the trial court’s dismissal of the whistleblower suit. In so ruling, it rejected the lower court’s ruling that Lippman “failed to show that he performed a whistle-blowing activity” because it was part of his job description.

“In our view, it would be a sad irony indeed if such a ‘watchdog’ employee, like plaintiff, would be deemed by a court to fall outside the wall of protection created by the Legislature to whistleblowers. If an individual’s job is to protect the public from exposure to dangerous defective medical products, CEPA does not permit the employer to retaliate against that individual because of his or her performance of duties in good faith, and consistent with the job description,” the Appellate Division explained.

The court further noted that so-called “watchdog” employees like Lippman are the “most vulnerable to retaliation because they are uniquely positioned to know where the problem areas are and to speak out when corporate profits are put ahead of consumer safety.”

The Issues on Appeal

While the appeals court ruled in favor of Lippman, other panels have ruled otherwise. In Massarano v. N.J. Transit, the Appellate Division ruled that a plaintiff was not entitled to whistleblower protection after reporting that key documents were thrown away in a dumpster, finding that she was just “doing her job as the security operations manager by reporting her findings and her opinion…” On the basis of this 2008 precedential decision, New Jersey courts have rejected similar CEPA claims. To resolve the conflict, the state Supreme Court must now decide whether watchdogs can be whistleblowers under CEPA.

If you have any questions about this case or would like to discuss New Jersey’s whistleblower laws, please contact me, Joel Kreizman, or the Scarinci Hollenbeck attorney with whom you work. 

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities post image

The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities

On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]

Author: Dan Brecher

Link to post with title - "The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities"
Common Legal Mistakes NYC and New Jersey Business Owners Make post image

Common Legal Mistakes NYC and New Jersey Business Owners Make

Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]

Author: Dan Brecher

Link to post with title - "Common Legal Mistakes NYC and New Jersey Business Owners Make"
What Founders Can Learn From Start-up Suits post image

What Founders Can Learn From Start-up Suits

High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]

Author: Dan Brecher

Link to post with title - "What Founders Can Learn From Start-up Suits"
Corporate Governance Reviews: A Practical Guide for New Jersey Companies post image

Corporate Governance Reviews: A Practical Guide for New Jersey Companies

Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]

Author: Ken Hollenbeck

Link to post with title - "Corporate Governance Reviews: A Practical Guide for New Jersey Companies"
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights post image

What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights

Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]

Author: Robert E. Levy

Link to post with title - "What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights"
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities post image

Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities

Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]

Author: Dan Brecher

Link to post with title - "Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!