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Consumer Fraud 1437 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.

Whistleblower Lawsuit Leads to $17 Million Recovery from Pentec Health

A whistleblower who filed a False Claims Act lawsuit against her former employer, Pentec Health Inc., has helped the U.S. government recover $17 million for Medicare and other federal health care programs. Jean Brasher filed the whistleblower lawsuit in October 2013 accusing Pennsylvania-based Penter Health Inc. of billing Medicare and other government programs for excessive amounts of its renal drug Proplete. According to the U.S. Justice Department, the whistleblower lawsuit alleged that Pentec also routinely waived patient copayments and deductible obligations to incentivize beneficiaries of the government programs to get Proplete prescriptions, even when more affordable options were available. Additionally, ... Read More

U.S. Government Sues Lockheed Martin, Alleging Hanford Nuclear Cleanup Fraud

The notorious Hanford Nuclear Reservation in Southeastern Washington has been mired in fraud and corruption for decades, ever since the U.S. government started paying contractors billions of dollars to clean up and convert 56 million gallons of radioactive sludge. On Feb. 8, the U.S. Department of Justice (DOJ) announced it has lodged a False Claims Act lawsuit against Bethesda, Maryland-based Lockheed Martin, alleging the company and its executives used a $232 million support contract for nuclear waste disposal to enrich themselves. According to federal prosecutors, Lockheed Martin engaged in a fraudulent kickback scheme by paying more than $1 million to ... Read More

Georgia Hospital Settles False Claims Act Suit, Agrees to Pay $5 Million

A North Georgia hospital will pay $5 million to settle allegations it violated the False Claims Act by engaging in improper financial relationships with referring physicians. Union General Hospital of Blairsville, Georgia, fell under scrutiny when federal authorities detected suspicious activity surrounding the abnormally high quantities of opioid drugs and Xanax being prescribed in connection with the hospital. Investigations by the FBI and other federal agencies led to the arrest of Union General Hospital CEO John Michael Gowder and two physicians — Dr. David Gowder and Dr. James Heaton. The three men now face federal charges of illegally prescribing thousands ... Read More

Whistleblower Helps U.S. Recover $8.1 Million from California Hospital Group

A whistleblower lawsuit accusing a Los Angeles-based hospital group of engaging in unlawful financial arrangements has led to an $8.1 million settlement with the U.S. Government. Avanti Hospitals LLC and six of its owners agreed to pay the U.S. $8.1 million to settle whistleblower allegations that they violated the Anti-Kickback Statute, the Physician Self-Referral Law (also known as the Stark Law), and the False Claims Act. The lawsuit, filed by Dr. Joshua Luke, the former CEO of Gardena Hospital, alleged that Avanti, Gardena Hospital, and at least two other Avanti affiliates bribed a high-referring physician with payments that exceeded the ... Read More

Walgreens Settles Two Whistleblower Lawsuits for $269.2 Million

Walgreens Boots Alliance, the holding company that owns the controlling shares of Walgreens Drug Stores and several other health care companies, will pay $269.2 million to settle two separate whistleblower lawsuits. In one case, Walgreens agreed to pay $209.2 million to settle allegations that it fraudulently billed Medicare, Medicaid, and other government health care programs for hundreds of thousands of insulin pens that beneficiaries did not need. According to the U.S. Attorney’s Office for the Southern District of New York, Walgreens configured its electronic systems so that its pharmacists couldn’t dispense less than a full box of five insulin pens, ... Read More

Workers sue J&J for overvaluing stocks amid asbestos scandal

Johnson & Johnson employees who trusted the company with their retirement savings by investing in the company’s stock are suing the consumer health care giant. They accuse the company of overvaluing its stocks while hiding the fact that its talcum powder products contained cancer causing asbestos, according to a proposed class action complaint filed in New Jersey federal court, Law360 reported. Lead plaintiff Michael Perrone claims that J&J and some of its senior executives violated the Employee Retirement Income Security Act (ERISA) by failing to act in the best interest of their retirement plans because they knew for decades that ... Read More

Threat of Soy Wiring Rodent Damage Rises in Winter

Did you know that soy wiring inside automobiles attracts mice and other rodents as a food source, potentially rendering your vehicle inoperable? That’s a message the National Pest Management Association (NPMA) wants motorists to hear, especially in winter time when soy wiring damage caused by rodents becomes more common. “Cars and trucks offer ideal places for refuge for rodents to spend the winter. Once inside, they are insulated from the cold and potential predators, and can easily gain access through vents, steering columns and pedal shafts,” said Cindy Mannes, vice president of public affairs for NPMA. “Some automobile brands also ... Read More

Whistleblower Files Retaliation Complaint Against Texas Mental Health Hospital

A whistleblower who lost her job at an Austin, Texas area mental health hospital allegedly for reporting patient mistreatment to state regulators has filed a retaliation complaint, accusing her former employer of violating Texas whistleblower laws. Plaintiff Nicola Seahorn was hired as the clinical services director at Georgetown Behavioral Health Institute in April 2018. She was on the job just a few months when she became concerned about the mistreatment of patients by hospital staff. On June 26, the chief nurse notified Ms. Seahorn that a mental health tech had punched a patient in the face, an altercation that was ... Read More

U.S. Supreme Court Won’t Revive Trinity Industries Guardrail Case

Trinity Industries will no longer have to fend off a $663.4 million judgment against it after the nation’s top court rejected a whistleblower’s bid to revive a 2014 jury verdict accusing the guardrail manufacturer of defrauding the government. The U.S. Supreme Court Justices declined to hear whistleblower Joshua Harman’s final appeal to leave the dangerous-guardrail judgment intact after it had been tossed by the Fifth Circuit Court of Appeals in New Orleans in 2017, according to Reuters. Mr. Harman sued Trinity Industries in 2012 under the whistleblower provisions of the False Claims Act, alleging that the Texas-based manufacturer defrauded the ... Read More

U.S. Attorney General Nominee Vows to Uphold False Claims Act

Stepping back from previous criticism of the False Claims Act, William Barr, Donald Trump’s nominee for U.S. Attorney General, pledged he would stand by the law that authorizes whistleblowers to sue on behalf of the U.S. government and American taxpayers. Mr. Barr, who served as the attorney general in President George H.W. Bush’s administration from 1991 to 1993, once described the False Claims Act as an “abomination” and displayed an appetite to challenge the law, which he viewed as unconstitutional. In 1989, Mr. Barr wrote that the whistleblower provision of the False Claims Act replaced the Judicial Department’s prosecutorial discretion ... Read More