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Consumer Fraud 1354 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 Sues Montana Hospital over Alleged Kickback Scheme

A newly unsealed whistleblower complaint against Kalispell Regional Healthcare accuses the Montana hospital of engaging in an extensive kickback scheme that put the profits of specialist physicians and hospital executives above patient care while defrauding U.S. and Montana taxpayers. The newly unsealed suit was originally filed in September 2016 by John Mohatt, formerly the CEO of Kalispell Regional Healthcare’s physician network. An amended False Claims Act complaint was filed in May of last year and remained under seal until recently, although the U.S. Department of Justice continues to investigate the whistleblower’s allegations, Kalispell’s Flathead Beacon reports. U.S. law prohibits hospitals ... Read More

Woodchucks Devoured Soy-Based Wiring in Paul Ryan’s Chevy Suburban

Rodent-attracting soy-based wiring in automobiles is a growing problem, and House Speaker Paul Ryan says his Chevrolet Suburban is among the vehicles that have been damaged by hungry rodent scavengers. “My car was eaten by animals,” Ryan told an audience at the Economic Club of Washington, according to The Washington Times. Ryan said that his Suburban has been parked at his mother’s house in Wisconsin ever since he became House Speaker in 2015 and was assigned a security detail. He hasn’t driven since then. According to Ryan, his mother went to Florida for the winter and when she returned she ... Read More

Whistleblower’s Suit Against Roche, Humana Survives Motions to Dismiss

A whistleblower’s $45 million False Claims Act lawsuit alleging Humana and Roche Diagnostics engaged in an illegal kickback scheme and other health care fraud will stand after an Illinois federal judge rejected two motions to dismiss the allegations. Crystal Derrick, a former Roche account manager, filed the whistleblower complaint on behalf of the U.S. government in 2014, HealthPayer Intelligence reports. She alleges that Roche improperly dismissed debt Humana owed to Roche in a bid to keep Roche Diagnostic’s diabetes testing products on Humana’s formularies. The deal also helped bar competitor products from Humana’s formularies, the whistleblower complaint alleged. According to Louisville Business ... Read More

Health Quest Pays $14.7 million To Resolve Whistleblower Allegations

Health Quest Systems Inc. and one of its hospitals will pay $14.7 million to settle three whistleblower complaints filed under the False Claims Act alleging the New York-based hospital system and one of its hospitals submitted inflated and ineligible claims to Medicare for reimbursement. In the settlement announced by the U.S. Department of Justice, Health Quest and Putnam Health Center of Carmel Hamlet, New York “admitted, acknowledged, and accepted responsibility for certain facts involving the submission of improper claims for various health-related services,” the Justice Department said. The whistleblowers alleged that Health Quest submitted for evaluation and management services but ... Read More

Record Opioid Fraud Sweep Charges 600

More than 600 doctors, pharmacists, and other medical professionals have been charged with health care fraud as part of the U.S. government’s ongoing efforts to beat back the growing opioid epidemic. According to the U.S. Department of Justice, the charges announced June 28 comprise “the nation’s largest-ever health care fraud takedown.” U.S. Attorney General Jeff Sessions called the opioid epidemic “the deadliest drug epidemic in the history of this country.” The epidemic killed about 64,000 people by addiction and overdose in 2016. The potent opioid painkiller fentanyl was the leading cause of most addiction and overdose cases. The 601 people ... Read More

AbbVie, Besins fined for delaying generic versions of AndroGel

AbbVie Inc., and its affiliate Bensons Healthcare were ordered to pay $448 million for allegedly reaping more than $1 billion in profits after filing sham lawsuits to keep competitors from launching generic versions of the companies’ top selling testosterone replacement therapy AndroGel. The companies filed patent lawsuits against Teva Pharmaceuticals USA and Perrigo Co., which were later ruled baseless by U.S. District Judge Harvey Bartle. If not for AbbVie and Besins’ efforts, Perrigo could have entered the market in June 2013 with its own generic version of AndroGel. “The patent attorneys also clearly recognized that the entry of generic versions ... Read More

Whistleblower Key in Recovering $8.5 Million from Tennessee Hospice Provider

A Tennessee hospice provider will pay the U.S. $8.5 million plus interest to settle a whistleblower lawsuit brought by a former nurse who claimed the company defrauding Medicare and Medicaid with false claims. The settlement resolves allegations lodged against Caris Healthcare L.P. by whistleblower Barbara Hinkle, a registered nurse who formerly worked for the hospice provider.  Ms. Hinkle sued Caris on behalf of the U.S. government under the whistleblower provisions of the False Claims Act. According to the U.S. Attorney’s Office for the Eastern District of Tennessee, which helped prosecute the case, Caris sought and admitted patients into its hospice ... Read More

Wells Fargo Wasn’t the Only Bank to Open Unauthorized Customer Accounts

Wells Fargo wasn’t an outlier when it opened 3.5 million unauthorized customer accounts. Federal regulators found that dozens of other banks opened nearly 10,000 deposit and loan accounts for customers without their consent. The new banking fraud revelation came in testimony given by U.S. Comptroller of the Currency (OCC) Joseph Otting before the Senate Banking Committee June 14. Although the number of newly discovered fraudulent accounts is miniscule in comparison to the 3.5 million bogus accounts Wells Fargo bankers opened for customers, it points to the need for banks to put better safeguards in place. According to USA Today, banking ... Read More

Woman fights to revive putative class action against J&J

A woman asked the Third Circuit to revive her putative class action lawsuit against consumer healthcare giant Johnson & Johnson, arguing that she would not have bought the company’s talcum powder if she had known it could put her at risk for developing ovarian cancer. Plaintiff Mona Estrada hasn’t developed cancer, but claims she suffered economic damages because she never received the “benefit of the bargain” when she purchased Johnson’s Baby Powder through the years. Estrada filed the lawsuit in April 2014 against Johnson & Johnson in California federal court, but the case was dismissed in March 2015 because she ... Read More

Moving Fraud: 12 Red Flags to Look for When Choosing a Moving Company

If you are moving and plan to hire a moving company to pack and haul your belongings, being aware of moving fraud and the red flags to look for can spare you from a lot of distress and expense. Each year, more than 35 million U.S. residents move for personal reasons or for career opportunities. With all your memories and belongings packed up and a new life in a new place on the horizon, moving can be a stressful event even in the best of circumstances. Unfortunately, rogue moving companies that profit by scamming their customers know the special vulnerabilities ... Read More