Consumer Fraud 700 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.

Texas Manufacturer Pays $8.5 Million To Settle Fraud Allegations


The Texas Attorney General’s Office has reached a settlement with a Dallas-area solar panel manufacturer to settle fraud allegations accusing the company of falsely putting “Made in the USA” labels on solar panels that were made in China. The manufacturer, 1 SolTech of Farmers Branch, Tex., and three of its executives will pay $5.8 million in civil penalties and attorney’s fees and another $2.7 million in restitution to customers affected by the mislabeled panels to resolve the case. The U.S. government was among the company’s customers that bought the misidentified panels from 1 SolTech. According to a lawsuit filed in ... Read More

University of Florida Pays $20 Million to Settle Complaint Alleging Grant Fraud


The University of Florida will pay the U.S. government nearly $20 million to settle allegations that it overcharged the Health and Human Services Department (HHS) for salary and administrative costs on hundreds of federal grants and misused grant funds. The federal government filed a False Claims Act complaint against the University of Florida after a Health Care Fraud Prevention and Enforcement Action Team (HEAT) investigation uncovered evidence of fraud. The Justice Department’s Civil Division’s Commercial Litigation Branch and the Dept. of Health and Human Services office of the Inspector General coordinated the settlement with the University of Florida. The University ... Read More

U.S. Backs Whistleblower Complaint Against Navy Contractor


The U.S. said on Wednesday that it has joined a False Claims Act lawsuit filed by a whistleblower who alleges a U.S. Navy contractor that provided goods and services to U.S. ships in ports around the world knowingly overbilled the government for a decade starting in 2005. The U.S. government contracted U.K.-based Inchcape Shipping Services Holdings Limited to provide goods and services, known as ship husbanding, for crews of ships at port in Asia, Africa, Central America, North America, South America, and Mexico. These services typically included providing food and other basic provisions, arranging ship-to-shore and local transportation, waste removal, ... Read More

Whistleblower Tips Continued To Rise In 2015, SEC Reports


The U.S. Securities and Exchange Commission’s (SEC) Office of the Whistleblower this week released its annual report for 2015, showing that the agency received 4,000 tips this year — marking a 30 percent increase in whistleblower activity since 2012. Since August 2011, when the SEC’s whistleblower program went into effect, the agency has awarded 22 whistleblowers more than $54 million. According to the SEC’s report, whistleblowers shared awards totaling more than $37 million in 2015 alone – nearly 70 percent of the total awards since the program started. The SEC’s whistleblower program awards whistleblowers a percentage of any monetary sanction ... Read More

Whistleblower, U.S. Take Indiana’s Largest Health Care System To Trial For Alleged Medicaid Fraud


An Indiana federal court heard opening arguments Friday in a whistleblower case brought by an Indiana doctor who accuses Indiana University (IU) Health and Healthnet of defrauding Medicaid out of $100 million and putting pregnant women and their unborn children at risk. Dr. Judith Robinson, former director of women’s services at HealthNet and medical director of ob-gyn services at Indiana University (IU) Health Methodist Hospital, alleges in her lawsuit that the care providers booted high-risk, low-income pregnant women on Medicaid to the care of less-expensive midwives, then billed the government for those services at higher rates, as though doctors performed them. This Medicaid fraud scheme, ... Read More

Education Management Corp. Pays $99.5 Million To Settle Whistleblower Lawsuit


The U.S. Justice Department said Monday that it had reached a “landmark global settlement” with Education Management Corporation, the second-largest for-profit education company in the nation, in which the company agreed to pay $95.5 million to resolve whistleblower allegations that it used unlawful methods to recruit and enroll students to its campuses. Education Management Corporation, which is headquartered in Pittsburgh, Penn., operates four post-secondary school brands: the Art Institutes, South University, Argosy University, and Brown-Mackie College. Student enrollment across the company’s schools exceeds 100,000 students. Accusations against Education Management Corp.’s practices have been raging for years, including allegations that its ... Read More

Millennium Health Pays $256 Million To Settle Claims of Drug Testing Fraud


Millennium Health, a giant drug and genetic testing company that has been implicated in troublesome claims of fraud and employee abuse under its previous name Millennium Laboratories, has agreed to pay the U.S. $256 million to resolve whistleblower allegations that it billed federal health care programs for expensive and medically unnecessary drug and genetic tests and for providing kickbacks to physicians who referred lab testing business to Millennium. Millennium will pay $227 million to settle allegations that it systematically defrauded Medicare, Medicaid, and other taxpayer-funded health care programs for excessive and unneeded urine drug testing for several years starting in ... Read More

Government Contractor Pays $9.8 Million To Settle False Claims Act Allegations


A Department of Defense contractor that provides GPS tracking systems to shipping containers in the Middle East has agreed to pay the U.S. $9.8 million to resolve False Claims Act allegations that it billed the government for faulty services and services that were never performed. The Defense Department contracted Scottsdale, Arizona-based APL Limited, an American subsidiary of Neptune Orient Lines Limited of Singapore, to affix a satellite tracking device to each shipping container transported from Karachi, Pakistan, to U.S. military bases in Afghanistan – a vital precaution taken to prevent military equipment from falling into the wrong hands. The U.S. ... Read More

U.S. Backs Whistleblower Complaints of Medicare fraud Against National Nursing Home Operator

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After investigating three separate lawsuits filed against an Atlanta-based national nursing home operator under the False Claims Act, the U.S. government has chosen to back the allegations of Medicare fraud expressed in the lawsuits and combine them into one consolidated complaint. According to the U.S. Department of Justice (DOJ), SavaSeniorCare and its related facilities, which operate about 200 nursing facilities in 23 states, “knowingly and routinely submitted false claims to Medicare for rehabilitation therapy services that were not medically reasonable and necessary.” Federal prosecutors allege that Sava strongly pressures its skilled nursing facilities to meet unrealistic financial goals. To achieve ... Read More

Whistleblowers Alleging Improper Cardiac Implants Help Medicare Recover $250 Million

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The U.S. Justice Department announced it has reached 70 settlements involving nearly 500 hospitals in 43 states, recovering more than $250 million to Medicare, thanks to a pair of whistleblowers who filed a False Claims Act complaint alleging cardiac devices were being implanted in patients against the recommendations of medical authorities who inform Medicare rules. The whistleblower complaint, which was filed in U.S. District Court for the Southern District of Florida, involved the surgical implantation of cardioverter defibrillators (ICDs) – electronic devices that are connected to the heart. ICDs deliver a shock to the heart and restore its natural rhythm ... Read More