Consumer Fraud 534 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.

The Fraud List: Boeing Doing Business As Usual

The Fraud List

Four Boeing Company employees who detected and documented years of fraudulent billing practices aimed at cheating the U.S. government out of defense funds filed a whistleblower lawsuit against the company under the False Claims Act in 2009. That lawsuit led to extensive federal investigations and months of litigation that ended with a $23-million settlement in October 2014. But that whistleblower case and subsequent settlement were not the only times Boeing has run afoul of federal prosecutors. Boeing, in fact, is one of the worst repeat offenders of U.S. laws and regulations governing the conduct of federal contractors, with a long ... Read More

Florida doctor settles whistleblower’s allegations of fraud with U.S.


The U.S. Justice Department says it has reached a settlement with a Jacksonville, Fla., doctor resolving a whistleblower’s allegations that he intentionally misdiagnosed patients so he could provide costly, unneeded services to them, for which he then billed Medicare, TRICARE, and the Federal Employees Health Benefits Program. Dr. Sean Orr, a neurologist formerly employed by Baptist Neurology Inc. and Baptist Medical Center – Jacksonville, will pay the federal government $150,000 to settle the claims against him. While whistleblower cases filed under the False Claims Act almost always recover at least $1 million, Dr. Orr’s penalty was based on his ability ... Read More

Second Circuit clarifies FLSA provisions by ruling against employer retaliation


Although employee retaliation protections in the Fair Labor Standards Act (FLSA) were addressed in 2011 by the Supreme Court case Kasten v. Saint-Gobain Performance Plastics Corporation, it was never made clear whether the employee complaints must be “filed” with a federal agency in order to be protected,  or if oral complaints made directly to the employer sufficed. However, a recent ruling in Greathouse v. JHS Security, Inc by the Second Circuit solved the dilemma by clarifying that even complaints voiced solely to the employer are protected by the FLSA and cannot be retaliated against. In this case specifically, an employee identified in litigation as ... Read More

Whistleblowers help Medicare recover $7.9 million from Medco


Two former employees of drug conglomerate AstraZeneca will be awarded as whistleblowers for helping the U.S. government recover $7.9 million from Medco Health Solutions with a whistleblower case alleging the pharmacy benefit management company engaged in an illegal kickback scheme. The share of the settlement that Paul DiMattia and F. Folger Tuggle will receive has not yet been determined, but under the terms of the U.S. False Claims Act, which lays out the rules for whistleblowers in false claims cases, the men could receive a total of up to $2.7 million. The whistleblowers alleged that Medco solicited payment from AstraZeneca ... Read More

Merck shareholders lawsuit accuses Vioxx maker of securities fraud

vioxx pills

A multidistrict litigation involving Merck & Co. shareholders claiming they were misled about heart attack risks with the drug company’s painkiller Vioxx will move forward though one claim against the company was scaled back. U.S. District Judge Stanley Chesler denied a motion by Merck to dismiss the claims saying there was insufficient evidence that the company’s statements about Vioxx risks before study data from VIGOR was released on March 27, 2000, were made with wrongful intent that would establish a securities fraud violation. VIGOR (Vioxx Gastrointestinal Outcomes Research) was a study to gauge gastrointestinal effects of Vioxx compared to naproxen, ... Read More

Whistleblower’s $19-million lawsuit against N.Y. hospital settled posthumously


The family of a hospital compliance officer who sued his former employer over federal anti-kickback law violations and retaliation but died before his case was settled will receive an undisclosed amount in the million-dollar range, lawyers involved in the litigation told Westchester County’s The Journal News. Dan Bisk worked for Westchester Medical Center in Westchester, N.Y., making sure the hospital’s administrators and staff operated in compliance with state and federal laws and regulations. Mr. Bisk repeatedly complained to the hospital’s CEO of an illegal kickback and referral scheme involving some of the area’s top cardiologists, but instead of responding to ... Read More

UPS whistleblower helps U.S. recover $25 million for late-delivery refunds


United Parcel Service Inc. (UPS) has agreed to pay the U.S. government $25 million to settle a whistleblower lawsuit that alleged the delivery service took measures that prevented federal agencies from getting a refund on packages delivered after the guaranteed delivery date. The federal government contracts UPS through the General Services Administration (GSA) and U.S. Transportation Command to provide delivery services to the Defense Department and other federal agencies. Under these contracts, UPS guarantees it will deliver packages by specified times the following day. However, according to a former UPS employee, for at least a decade UPS concealed its failure ... Read More

Judge gives green light to nurse’s whistleblower case against California hospital


A registered nurse who accuses Marshall Medical Center in Placerville, Calif., and two physicians of billing fraud and illegal retaliation will see her whistleblower case go to trial, a Sacramento district court judge has ruled. Colleen Herren, who worked as a clinical nursing director for specialty clinics at Marshall Medical Center from 2010 to 2011, alleges she warned hospital management about a lack of physician oversight in patient care, double billing for chemotherapy drugs, and billing for physician visits that never occurred. Ms. Herren also alleges that she was fired in retaliation after she continued to voice her concerns about ... Read More

Trucking firms allege Pilot Flying J rebate scam was bigger than most realized


Several trucking firms that refused to settle fraud claims with truck-stop chain Pilot Flying J say that they have discovered another dimension of the alleged fraud that other trucking companies overlooked. In November 2013, Pilot Flying J, the largest travel center chain in the U.S., agreed to pay $85 million to settle a class-action lawsuit alleging the company defrauded thousands of trucking firms by not paying them the proper fuel rebates. According to that complaint, the plaintiffs agreed to buy fuel exclusively from Pilot Flying J in exchange for lower fuel prices, which were to be based on the cost ... Read More

Siemens settles allegations it overcharged U.S. military for medical equipment


Siemens Medical Solutions USA Inc., a unit of the German multinational engineering conglomerate Siemens AG, has agreed to pay the U.S. $5.9 million to end a dispute with federal prosecutors that it overcharged the U.S. government for medical imaging equipment. According to a complaint filed by the U.S. Attorney’s Office, Malvern, Penn.-based Siemens Medical Solutions failed its contractual obligation with the Defense Supply Center of Philadelphia to provide the U.S. Department of Defense and the U.S. Department of Veterans Affairs the largest available discount on medical equipment. Federal prosecutors alleged that Siemens Medical Solutions sold a “like system” to a ... Read More