Consumer Fraud 978 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.

J&J agrees to pay $5 million over false claims with its bedtime bath products

baby in crib - CPSC photo

It took six long years, but Johnson & Johnson is finally ready to settle a class action lawsuit by a group of consumers who took issue with the company’s advertisement claims that its bedtime bath products were “clinically proven” to help babies sleep better. The consumer health care giant asked an Illinois federal judge to approve its payout of $5 million to settle the claims. The national class was certified in August and a preliminary agreement was approved by U.S. District Judge Eline Bucklo. The agreement will be final as soon as she gives the last nod. Johnson & Johnson says ... Read More

Baxter Healthcare To Pay $18M For Potentially Botching IV Solutions

Baxter IV bag

Baxter Healthcare Corporation has agreed to pay the U.S. more than $18 million to resolve criminal and civil liabilities stemming from its failure to follow Good Manufacturing Practices when manufacturing sterile drug products at one of its U.S. manufacturing facilities. The settlement, announced by the U.S. Department of Justice Jan.12, includes a deferred prosecution agreement, penalties, and forfeiture totaling $16 million and a civil settlement resolving a whistleblower’s False Claims Act lawsuit totaling approximately $2.158 million. According to the court documents, the U.S. alleged that Baxter’s Marion, N.C., manufacturing facility introduced adulterated drugs into the U.S. market because it failed to ... Read More

Shire Pharmaceuticals Pays $350 Million To Settle ‘Landmark’ False Claims Act Suit

Pills - Stethoscope on Money

Shire Pharmaceuticals LLC and subsidiaries of the Ireland-based drug maker have entered into a “landmark” settlement with the U.S. government, agreeing to pay $350 million to resolve a series of whistleblower lawsuits alleging the company used kickbacks and unlawful tactics to boost sales of its Dermagraft treatment for diabetic foot ulcers. According to Benjamin Mizer, principal deputy assistant attorney general and head of the Justice Department’s civil division, the settlement is the largest False Claims Act recovery in the U.S. in a kickback case involving a medical device. Allegations resolved by the settlement were brought in six lawsuits filed under the qui tam, ... Read More

SEC Whistleblower Gets $5.5 Million Award For Providing ‘Critical’ Tips

SEC Office of the Whistleblower - wikipedia image

The U.S. Securities and Exchange Commission (SEC) has awarded a whistleblower more than $5.5 million for providing “critical information that helped (regulators) uncover an ongoing scheme” to defraud investors, the agency said in a Jan. 6 announcement. According to the SEC, the whistleblower in this case was employed at the company involved in the wrongdoing and reported information directly to the SEC. These tips enabled SEC authorities to make a successful enforcement action and end the scheme. “Whistleblowers play a key role in bringing wrongdoing to the SEC’s attention, and this whistleblower helped prevent further harm to a vulnerable investor ... Read More

Whistleblower Case Settlement Lands District of Oregon’s Largest Recovery For 2016

whistleblower reward justice

A False Claims Act case brought by a pair of whistleblowers against an Oregon-based owner and operator of independent living communities for seniors led to the single largest civil recovery for the U.S. Attorney’s Office for the District of Oregon in 2016, according to an end of the year review. On May 5, U.S. Attorney Billy J. Williams announced that Holiday Acquisition Corp. and Fortress Investment Group, LLC (collectively Holiday) agreed to pay $8.86 million to resolve a False Claims Act lawsuit alleging it improperly received veterans’ benefit payments from the U.S. Department of Veterans Affairs (VA) for care that ... Read More

False Claims Act Cases Return $4.7 Billion To U.S. Taxpayers in 2016

whistleblower reward justice

False Claims Act lawsuits, much of which were initiated by whistleblowers, helped the U.S. government recover more than $4.7 billion in fiscal year 2016, the U.S Department of Justice (DOJ) said in a year-end review. The recoveries amounted to the third-largest return of federal funds to U.S. taxpayers in the history of the False Claims Act. The total False Claims Act recoveries in 2016 eclipsed the previous year’s recoveries totaling $3.6 billion and mark the fifth consecutive year that the government recovered more than $3.5 billion from False Claims Act complaints. “It’s the icing on the cake for an epic ... Read More

FTC sues memory pill maker over alleged false claims


The Federal Trade Commission (FTC) and the New York attorney general’s office are calling memory-boosting claims made by dietary supplement manufacturer Quincy Bioscience LLC a bunch of bologna and are suing the company demanding it reimburse consumers who they say were duped into buying the memory supplement Prevagen. The lawsuit was filed in the U.S. District Court for the Southern District of New York. Prevagen is sold for $24 to $68 per 30-pill bottle through cable and broadcast TV ads, and has generated about $165 million in sales between 2007 and mid-2015, according to court filings. The company touts the ... Read More

Five More Volkswagen Execs Face Criminal Charges In U.S. For Emissions Scandal

VW consumer fraud

Federal prosecutors announced Wednesday that five more Volkswagen executives have been charged for crimes in the German automaker’s emissions scandal, bringing recent indictments to six. The announcement follows the Saturday arrest of Oliver Schmidt, the top VW emissions compliance manager for Volkswagen in the U.S. Federal authorities arrested Mr. Schmidt, a German national, at the airport just before he boarded a flight from Miami to Germany. According to the New York Times, the five other VW executives charged Wednesday are: Heinz-Jakob Neusser, 56, who oversaw the company’s brand; Jens Hadler, 50, who oversaw engine development; Richard Dorenkamp, 68, another supervisor ... Read More

Women sues Joint Juice maker for making false claims


A woman has filed a lawsuit against Premier Nutrition Corp., formerly known as Joint Juice Inc., alleging the company violated the Maryland Consumer Protection Act by enticing consumers to purchase its Joint Juice products with deceptive claims that the dietary supplement products would support and nourish cartilage, lubricate joints, and improve aches and pains. The products, the woman claims, simply did not work as promised. Marilyn Spencer filed a complaint on behalf of others similarly affected in the U.S. District Court for the Northern District of California. She claims the products did not perform as advertised despite the company’s claims ... Read More

Volkswagen Executive Arrested For Duping U.S. In Emission Cheat Probe

VW consumer fraud

Federal Bureau of Investigation (FBI) authorities arrested a Volkswagen executive in Florida Saturday, accusing him of conspiracy to defraud the United States by blocking regulators from discovering that diesel-powered VW vehicles had been programmed to cheat emissions tests. According to the New York Times, the FBI accuses Oliver Schmidt, a German national, of misleading auto regulators after a University of West Virginia study in early 2014 uncovered discrepancies in VW diesel car emissions. The former top VW emissions compliance manager for Volkswagen in the U.S., Mr. Schmidt allegedly played a central role in trying to convince investigators that excessive emissions ... Read More