Consumer Fraud 870 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.

Mount Sinai Hospitals Settle Whistleblower Lawsuit Alleging They Held Onto Medicare, Medicaid Overpayments

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Three Mount Sinai Health System hospitals have agreed to pay the U.S. government nearly $3 million to settle a False Claims Act lawsuit brought by a whistleblower who accused them of keeping Medicare and Medicaid overpayments beyond the 60-day repayment window. According to Modern Healthcare, the New York City hospitals named in the complaint – Mount Sinai Beth Israel, Mount Sinai St. Luke’s, and Mount Sinai Roosevelt – were a part of Continuum Health Partners when the alleged overpayments were made in 2009 and 2010. The 444 overpayments at the crux of the case total $844,000. Mount Sinai Health System ... Read More

Whistleblower Files $1.5-Million Retaliation Suit Against Kennesaw State University

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An employee of Kennesaw State University has filed a $1.5-million whistleblower retaliation lawsuit against the school, alleging she continues to be harassed for calling out ethics violations by certain university leaders. The Atlanta Journal-Constitution reports that Tracy Nunn, a former administrative assistant to the executive director of culinary services, filed the lawsuit Monday in the Superior Court of Fulton County, seeking compensation for the university’s alleged violations of the Georgia Whistleblower Protection Act. The lawsuit comes amid a series of high-level firings and abrupt resignations that have plagued the university in recent months, including President Dan Papp, who resigned after ... Read More

Indiana Clinic To Pay $190,000 To Settle Whistleblower’s Medicaid Fraud Accusations

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An Indiana clinic has agreed to pay $190,000 to settle a whistleblower lawsuit filed under both the federal and Indiana False Claims Act alleging its pursuit of public funds turned it into a profit-driven “pill mill.” According to the Anderson, Ind., Herald Bulletin, which obtained a copy of the agreement, Dr. Nilda Durany sued the Madison County Community Health Center in 2012, accusing the clinic of unlawful activities that needlessly cost federal and state health care coffers. The complaint triggered an investigation and raid by the health center by the Drug Enforcement Administration (DEA), which turned up evidence to support Dr. Durany’s ... Read More

Whistleblower Case Against Florida Pump Manufacturer Could Go to U.S. Supreme Court


Eighteen years ago, Robert Purcell filed a lawsuit under the whistleblower provisions of the False Claims Act, accusing his former employer, MWI Corp., of using federal funds to coax Nigerian officials in the course of selling irrigation pumps to the West African nation. Now, after nearly two decades of victories and defeats, the case could be headed to the U.S. Supreme Court. A report by the Orlando Sentinel explains that the SCOTUS justices have a Sept. 19 deadline to decide whether they will review Mr. Purcell’s whistleblower case against MWI, a pump manufacturer based in Deerfield Beach, Fla. In the ... Read More

SEC Fines Health Insurer For Barring Former Employees From Seeking Whistleblower Awards

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A California-based health insurance provider has agreed to pay a $340,000 penalty for illegally coercing its employees into remaining mute about company practices that did not comply with federal code. The U.S. Securities and Exchange Commission (SEC) said last week that Health Net Inc. violated federal securities laws by stripping employees of their rights to act as whistleblowers and seek whistleblower awards as a condition to receiving severance payments and other post-employment benefits. Health Net added the unlawful provision in August 2011 after the SEC adopted a rule prohibiting employers from taking any action to impede someone from communicating with ... Read More

Marinello Beauty Schools Pay $11 Million To settle Whistleblower Fraud Allegations


A for-profit chain of cosmetology schools has agreed to pay $11 million to settle a whistleblower lawsuit brought by six former employees who alleged the schools defrauded the federal government by falsifying student loan applications and exaggerating claims about enrollment and post-graduate employment. Marinello Schools of Beauty started in 1905 and grew to include 56 campuses throughout the U.S., including California, Connecticut, Kansas, Massachusetts, Nevada, and Utah. The chain of schools closed abruptly in February after the U.S. Department of Education investigated the whistleblower claims and decided to bar Marinello schools from receiving any more federal financial aid funds. Lawyers ... Read More

Whistleblower Says Medtronic Promoted Spinal Implants For Unapproved Uses

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Medical device manufacturer Medtronic is facing another whistleblower lawsuit alleging it submitted false claims to Medicare, Medicaid, and other government health care programs for bone-growth implants it pushed for unapproved, off-label purposes. The whistleblower complaint alleges that Medtronic aggressively marketed its VERTE-STACK “cage” implants for cervical spine use even though the devices were only approved by federal regulators for use in the thoracic and lumbar spine. Medtronic unlawfully pushed the devices for this unapproved use when labels on the device explicitly warn “not for cervical spine use,” the lawsuit asserts. E-mails and other communications from Medtronic’s marketing officers allegedly show ... Read More

Pillow Manufacturer Settles Tax Fraud Case With New York, Whistleblower


Lawyers for a whistleblower who sued a pillow manufacturer on behalf of the state of New York over alleged tax fraud said Monday the parties have reached a settlement for more than $1 million. My Pillow Inc., a Minnesota company, will pay the state of New York $1.109 million to resolve the complaint, filed by a whistleblower under the New York False Claims Act in New York Supreme Court, New York County. According to the firm, the settlement resolves allegations that My Pillow knowingly failed to collect and remit New York use taxes on Internet and telephone sales to in-state ... Read More

Whistleblower Helps U.S. Recover $13 Million From Importer In Customs Fraud Case


A clothing manufacturer and its owners and officers have agreed to pay the U.S. government more than $13 million to settle a False Claims Act lawsuit brought by a whistleblower who accused the defendants of committing customs duties fraud over the course of several years. Federal prosecutors said that Motives, Motives Far East, and Motives China, which manufacture clothing overseas and import it to the U.S., agreed to pay the government $13,375,000 to resolve the whistleblower complaint. The settlement is the largest case of customs fraud ever resolved in New York. The complaint alleged that Motives falsely undervalued the clothing ... Read More

Appeals Court Revives Whistleblower Lawsuit Against Medicare Advantage Insurers


A whistleblower who sued a group of health care insurance companies over Medicare fraud only to have his complaint tossed will have another chance in court after the Ninth Circuit Court of Appeals revived his case. Former SCAN Health Plan data manager James Swoben filed the False Claims Act lawsuit against UnitedHealthcare, Aetna, WellPoint, Health Net and physician group HealthCare Partners, accusing them of miscoding patient data to boost Medicare reimbursements. Mr. Swoben claims the Medicare Advantage providers started submitting false diagnosis codes in 2005 after conducting biased retrospective medical record reviews to certify their risk adjustment data. The providers ... Read More