Consumer Fraud 1123 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.

Ohio health care companies settle whistleblower allegations

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Three Ohio health care companies and their executives will pay nearly $20 million to settle whistleblower allegations that they billed Medicare for medically unnecessary rehabilitation therapy and hospice services. Foundations Health Solutions Inc., Olympia Therapy Inc., Tridia Hospice Care Inc., and their executives, Brian Colleran and Daniel Parker, have agreed to pay approximately $19.5 million to resolve allegations, the U.S. Department of Justice said Monday, July 17. The settlement resolves two lawsuits filed by three former employees of Olympia Therapy and Tridia Hospice under the whistleblower provisions of the False Claims Act. FHS is the corporate successor to Provider Services ... Read More

Whistleblower: Wells Fargo Defrauded Mortgage Borrowers

Wells Fargo fraud

A former Wells Fargo banker has filed a lawsuit against the banking giant, accusing it of firing him in retaliation for standing up against an alleged practice of defrauding borrowers by blaming them for delays in processing mortgage applications that were the bank’s fault, then hitting them with the resulting fees. According to the Los Angeles Times, Mauricio Alaniz, a former banker at a Wells Fargo Beverly Hills unit, alleges in his federal lawsuit that the bank’s mortgage-processing and underwriting division was understaffed, resulting in chronic delays that weren’t the borrowers’ fault. Borrowers applying for mortgages are typically locked into ... Read More

Hospice groups settle whistleblower suits


Two subsidiaries of the Compassionate Care Hospice Group have agreed to settle separate False Claims Act lawsuits filed by whistleblowers who claim the companies defrauded Medicare and other federal health care programs. The U.S. Attorney’s office for the Northern District of Georgia said that Compassionate Care Hospice of Atlanta will pay the U.S. $2.4 million to resolve allegations that it paid illegal kickbacks to five doctors in exchange for patient referrals and certifying patients as eligible for hospice services when they weren’t. Compassionate Care Hospice of Atlanta provided payments to a medical director in return for referrals and also created ... Read More

States to Fight Pollution With Volkswagen Settlement Funds

VW consumer fraud

U.S. States will soon have access to $2.7 billion of a Volkswagen settlement resulting from its use of emissions cheating devices in certain diesel vehicles, and that money may be invested in projects that promise to reduce pollution. The Minneapolis Star Tribune reports that the state of Minnesota will receive a $47 million share of the Volkswagen settlement amount. Officials there are currently receiving proposals from a number of businesses and organizations urging that some of the funds be invested in various environmentally friendly projects and products. In June 2016, Volkswagen agreed to pay the U.S. and automakers affected by ... Read More

Whistleblower Alleges Gentiva Defrauded Medicare

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A whistleblower lawsuit against Gentiva Health Services unsealed July 10 alleges the company defrauded Medicare by misclassifying home health care patients as hospice patients in order to boost reimbursements. Alan Stewart, an Area Vice President with Gentiva, filed the complaint in 2014 under whistleblower provisions of the False Claims Act. He alleges Gentiva launched a “new financial plan” in 2013 that involved recoding many patients receiving home health care as hospice patients, even when those patients did not require hospice services. According to McKnight’s, more than half of the patients who migrated from home health care to hospice care were ... Read More

Whistleblower Helps U.S. Recover $155 Million


One of the nation’s largest vendors of electronic health records software, eClinicalWorks, and certain of its employees will pay a total of $155 million to settle a whistleblower lawsuit alleging they misrepresented the capabilities of their software and paid kickbacks to customers in exchange for promotional favors. The U.S. Department of Justice said that the Westborough, Massachusetts-based software firm “falsely obtained” government-required certification for its electronic health records software by concealing from its certifying agency the software’s noncompliance with federal certification requirements. The American Recovery and Reinvestment Act of 2009 established the Electronic Health Records (EHR) Incentive Program to encourage ... Read More

U.S. Joins Whistleblower Disabled-Housing Suit


The United States government announced it is joining a False Claims Act lawsuit against the City of Los Angeles filed by a whistleblower who accuses the city of failing to develop housing for the disabled despite accepting millions of dollars in federal funds earmarked for that purpose. The lawsuit, filed by wheelchair user Mei Ling, alleges Los Angeles and the CRA/LA (previously known as the Community Redevelopment Agency of the City of Los Angeles) falsely certified they complied with federal accessibility laws while accepting housing grants from the federal Department of Housing and Urban Development (HUD). To receive the federal ... Read More

Whistleblower Case against Gilead Sciences Revived


A whistleblower lawsuit against drugmaker Gilead Sciences Inc. alleging the company misled federal drug regulators into approving adulterated HIV drugs has been revived by a federal appeals court. The Recorder reports that the Ninth Circuit Court of Appeals ruling reverses a California Court’s dismissal of the case. The appellate court said in its opinion that the claims made by whistleblowers Jeff and Sherilyn Campie, both former Gilead employees, are sufficient and satisfy the requirements of a False Claims Act complaint. The Campies accuse Gilead of using synthetics from a manufacturer in China to lower the production costs of its HIV ... Read More

National Guard Whistleblower Gets Help From U.S. Senator

whistleblower retaliation

U.S. Senator Claire McCaskill (D-MO) has gone to bat for a Missouri National Guard whistleblower who was fired in 2014, less than a week after voicing complaints about toxic working conditions and lack of proper tools needed to do his job. According to the St. Louis Post-Dispatch, Sen. McCaskill sent a letter to the Missouri National Guard July 13 asking what its leaders’ intentions are in light of a Department of Defense determination that Guard officer Michael Sandknop was wrongfully terminated in retaliation for his complaints. In a 34-page report on Mr. Sandknop’s case, Department of Defense Inspector General Glenn ... Read More

‘Largest-Ever’ Health care Fraud Sweep Results in 400-Plus Arrests

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A massive federal crackdown on health care fraud has resulted in charges against more than 400 people nationwide, and prosecutors allege their false billings to the government have cost taxpayers about $1.3 billion. U.S. officials said Thursday the takedown was the “largest ever health care fraud enforcement action” by the Medicare Strike Force. It involved more than a thousand law enforcement agents arresting 412 individuals in 30 states. About a quarter of those currently facing health care fraud charges from the action are doctors, nurses, and other medical professionals. While the health care fraud sweep could return some funds to ... Read More