Category

Consumer Fraud 616 articles

Investment and securities fraud is one area of consumer fraud litigation pursued by the attorneys at Beasley Allen. Litigation includes individual cases as well as class actions that have been filed throughout the country. Cases in this area also involve matters including wrongful conduct of insurance and finance companies including fraud and bad faith, mortgage loan fraud, general consumer fraud and employment issues. Pending cases include securities and investment fraud litigation against companies including Stanford Securities and Regions Morgan Keegan, among others.

Our firm also is representing people who have been taken advantage of in the workplace, through violations of the Fair Labor Standards Act (FLSA). In these cases, employers intentionally misclassify employees as independent contractors or managers in order to reduce costs such as overtime compensation, employee benefits, payroll taxes, unemployment compensation and workers compensation.

Nuclear Weapon Contractor Settles False Claims Act Case Alleging Misuse Of Funds

whistleblower-5

The U.S. government has recovered nearly $5 million from a corporation hired to operate Sandia National Laboratories, the largest national research laboratory in the U.S. charged mainly with overseeing the development and manufacture of non-nuclear components of nuclear weapons. According to the U.S. Justice Department, Sandia Corporation, a privately owned company contracted by the federal government to run Sandia National Laboratories, agreed to pay $4.79 million to resolve allegations that it illegally used taxpayer money to lobby for an extension of its $2.4-billion-per-year management contract – a violation of the False Claims Act and the Byrd Amendment. Sandia Corporation is ... Read More

SEC declines to levy charges in Target data breach

Target

After exposing the personal and financial information of millions of unsuspecting consumers in late 2013, the Target data breach will not be penalized by the Securities and Exchange Commission (SEC). “The SEC’s Enforcement Division concluded its investigation during the second quarter of 2015 and does not intend to recommend an enforcement action against us,” Target claims in its quarterly filing. The lack of disciplinary action comes as a surprise to many, considering how many unlucky Target customers were forced to shoulder the tireless aftermath of having their personal and financial information stolen by cybercriminals. However, other agencies, such as the ... Read More

IRS data breach class action alleges the government failed to protect citizen data

data-breach

The IRS data breach, which has affected about 330,000 Americans to date, may have even more serious repercussions on the government agency, including a class action lawsuit now brewing behind the scenes. According to Forbes, Beck Welborn and Wendy Windrich, both taxpayers negatively impacted by the cyberattack, filed the lawsuit both individually and on behalf of a proposed class action to allege that the agency was aware of the website’s security issues. The defendants named in the lawsuit are the Internal Revenue Service (IRS) and IRS Commissioner John A. Koskinen. “What should have been a trustworthy digital service had been ... Read More

Amgen To Pay $71 Million For Illegal Drug Promotions

Pills - Stethoscope on Money

California-based drugmaker Amgen has agreed to pay $71 million to 49 states and the District of Columbia to resolve allegations that it misbranded two of its blockbuster drugs, Aranesp and Enbrel, by pushing them for purposes unapproved by the U.S. Food and Drug Administration (FDA). The settlement resolves some of the same allegations that were settled in a $762-million agreement between Amgen and the federal government in December 2012. That case stemmed from whistleblower lawsuits that alleged that Amgen promoted its anemia drug Aranesp at higher doses and more frequent intervals than allowed by the FDA in order to increase ... Read More

Johnson Health Tech penalized $3 million in handling of Matrix Fitness equipment recall

Recall - Matrix Fitness Ascent Trainers

Johnson Health Tech has agreed to pay a $3 million civil penalty from the U.S. Consumer Product Safety Commission (CPSC) for failing to report dangerous defects in its recalled Matrix Fitness Ascent Trainers and Elliptical Trainers in a timely manner. According to the Matrix Fitness Ascent Trainers and Elliptical Trainers recall, the defective fitness machines come in black and silver with an orange accent color on the machine’s body and foot pedals, while the Elliptical comes in a standard black and silver. Model numbers beginning with A3x, A5x, A7x, E3x, E5x or E7x can be found on a decal located ... Read More

The Fraud List: Adventist Health System demonstrates a history of health care fraud

The Fraud List

Adventist Health System is a non-profit health care organization run by the Seventh-day Adventist Church. The Altamonte Springs, Fla.-based organization network encompasses about 45 hospital campuses in 10 Southern and Midwestern states in addition to a number of urgent care centers, home health care and hospice centers, and nursing homes, making it the largest Protestant-affiliated non-profit health care provider in the U.S. Adventist Health says its organization “incorporates Christian values at every level of service” and conducts its business “with integrity, honesty and fairness,” yet somehow these values have led it into numerous multimillion-dollar settlements to resolve allegations of fraud, most ... Read More

Target data breach agreement with Visa to reimburse costs up to $67 million

Target

Just two years after one of the largest data breaches in U.S. history, Target Corp. and Visa Inc. have announced an agreement worth nearly $67 million to reimburse costs associated with the Target data breach. In May of this year, a $19 million agreement fell through after the majority of affected banks refused to sign onto the proposed class action settlement. The new $67 million agreement reached between the two parties is more than triple the size of the past contract. According to Target, the agreement was created using a subset of card issuers to represent the Visa cards believed ... Read More

Whistleblower Complaint Recovers $5.5 million From Missouri Hospitals

whistleblower

Two Missouri hospitals will pay the United States $5.5 million to resolve a whistleblower complaint alleging they violated the False Claims Act by rewarding physicians for referring Medicare patients to the hospitals. According to the U.S. Justice Department, the whistleblower complaint accused Mercy Health Springfield Communities and Mercy Clinic Springfield Communities of engaging in prohibited financial arrangements with physicians by rewarding them with bonuses based on the value of the Medicare patient referrals the physicians directed to their clinics. Together, the defendants own and operate a hospital in Springfield, Mo., and several health care clinics in southwestern Missouri. Federal law restricts the ... Read More

Citizens Bank To Pay $18.5 Million For Pocketing Deposit Discrepancies

whistleblower-5

Citizens Bank will pay $18.5 million in refunds and penalties for its failure to credit consumers with the full amount of their deposits, the Consumer Financial Protection Bureau (CFPB) announced Aug. 12. CFPB Director Richard Cordray said that the Cleveland, Ohio-based bank pocketed the extra money when the amount customers wrote on their deposit slips was less than the amount they actually deposited. “Citizens Bank regularly denied customers the full credits of their deposits when there were discrepancies between deposit slips and the actual money transferred into the bank,” Mr. Cordray said in a statement. “The bank chose to ignore ... Read More

Graco and counsel’s conduct under probe following “serious concerns” during child car seat recall class action

Recall - child safety seats

Graco Children’s Products has come under fire by U.S. District Judge James Donato for conduct during the company’s child car seat recall and subsequent proposed class action litigation. The judge referred to Graco’s and its outside counsel’s behavior as “troubling.” Judge Donato has now asked the district’s Standing Committee on Professional Conduct to investigate concerns regarding the counsel’s claims about the availability of full refunds to those who purchased Graco’s recalled child car seats. The proposed class action against Graco and its parent company Newell Rubbermaid stems from the multi-million child car seat recall initiated in 2014 after pressure from the National ... Read More