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Consumer Fraud 1449 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.

Veterans Sue 3M for Defective Combat Earplugs

Department of Defense contractor 3M faces a series of lawsuits representing hundreds of veterans who allege the company provided U.S. armed forces with defective combat earplugs that failed to work as intended and led to hearing loss and tinnitus as a result. The lawsuits, filed in multiple states including Maryland, Texas, South Carolina and Florida, follow a $9.1 million settlement between 3M and the U.S. government over the same dual-ended Combat Arms Earplugs, Version 2. That agreement resolved allegations that Aearo Technologies, a company that 3M later bought, violated the False Claims Act by selling the U.S. defective combat earplugs ... Read More

Landmark Mental Health Ruling Finds Top Insurer Illegally Denied Patients Coverage

Mental health patients in the U.S. scored major victory when a federal judge issued a landmark ruling against the nation’s largest health insurer, finding that it has been illegally denying coverage to policyholders seeking treatment for mental health and substance abuse. United Behavioral Health, a unit of UnitedHealthcare, “deviated” from national health care standards by implementing cost-cutting policies that effectively deprived mental health patients of access to critical, life-saving treatments, U.S. Chief Magistrate Judge Joseph Spero found. He also suggested that the company was more intent on feeding its bottom line than providing adequate and appropriate coverage to mental health ... Read More

Proposed Overtime Rule Could Benefit 1 Million U.S. Workers

A proposed change in federal labor laws could expand overtime eligibility to more than 1 million salaried workers in the U.S. The U.S. Department of Labor proposed raising the overtime threshold to most salaried workers earning an annual salary of $35,308 or $679 per week so that employees making less than that amount would be eligible for time-and-a-half pay for any hours over 40 worked per week. Currently, the overtime threshold sits at $23,660 or $455 per week, so anyone making more than that isn’t eligible for overtime pay. The government set the current overtime threshold 15 years ago. The ... Read More

Nursing Home Chain Settles ‘largest worthless services’ case in U.S. history

A Tennessee nursing home chain will pay the U.S. and Tennessee more than $18 million in a record settlement that federal officials called the “largest worthless services” case in U.S. history. Vanguard Healthcare, five nursing homes it owns and operates, and two of the company’s executives engaged in a scheme that not only harmed vulnerable patients but cheated Medicare and Medicaid out of millions of dollars, federal prosecutors alleged. Among the Justice Department’s many findings, the Vanguard nursing homes allegedly involved in the scheme failed to administer medications to residents as prescribed; failed to provide standard infection control; failed to ... Read More

Feds Bust $8.6 Million Home Health Care Fraud Operation in Miami

Two Florida residents face time in federal prison for operating a home health care fraud scheme that cheated Medicare out of $8.6 million. The U.S. Department of Justice said that a federal judge in Miami sentenced Alexander Ros Lazo, 54, the owner of T.L.C. Health Services of Miami to 87 months in prison. According to the government’s complaint, Mr. Ros Lazo and his employee, Misleidy Ibarra, 46, conspired with others in building their Medicare patient base and in billing the government for illegitimate physical therapy services. Federal prosecutors said that Ms. Ibarra performed home health therapy services without a license ... Read More

Whistleblower Helps U.S. Nab California Urology Chain For Medicare Fraud

A whistleblower’s False Claims Act lawsuit has led to a $1.85 million settlement between Skyline Urology and the U.S. government, resolving allegations that the Torrance, California-based health care company deliberately overbilled Medicare. Federal prosecutors investigated the whistleblower’s claims and alleged that from January 1, 2013, through 2016, Skyline Urology systematically billed Medicare for evaluation and management services in violation of federal rules. Although some exceptions exist, health care providers are not permitted to bill Medicare for evaluation and management services on the same day a related procedure is performed. This is because the cost of evaluating a patient is included ... Read More

USC agrees to pay $215 million to settle gynecologist sex abuse claims

The University of Southern California (USC) has agreed to pay $215 million and implement numerous reforms to settle a class action lawsuit brought by dozens of women who allege they were sexually abused by a gynecologist at the USC Student Health Center over the course of nearly three decades. A court will need to approve the settlement, which also requires USC to obtain background checks for anyone who interacts with patients at the school’s student health center, and give female patients the option to see a female doctor. An independent women’s health advocate will also be appointed to ensure any ... Read More

OSHA Orders Salon To Pay Employee Fired For Whistleblower Complaint

A Pennsylvania hair salon will have to pay a former employee $40,000 in back pay after the Occupational Safety and Health Administration (OSHA) found the salon owners unlawfully fired the employee in retaliation for contacting OSHA with health and safety concerns. OSHA said the U.S. Department of Labor filed a lawsuit against Blown Away Dry Bar and Salon in Kennett Square, Pennsylvania, on behalf of the hairstylist. The lawsuit was prompted by a complaint the hairstylist’s husband reported to OSHA. Business Insurance fills in some of the details of the case, announced by OSHA on Feb. 19. In March 2017, ... Read More

Lawsuit claims Roundup herbicide disrupts healthy gut bacteria

Monsanto, which was acquired by Bayer AG last year, is facing thousands of lawsuits alleging an ingredient in its Roundup weed killer causes cancer. But a new class action lawsuit filed in Kansas City, Missouri, claims that the glyphosate in the herbicide attacks a gut enzyme found in the beneficial intestinal flora of humans and some animals. The suit says the companies deceived consumers about the product’s safety. In recent years, gut bacteria have played a more prominent role in medical research, with unhealthy intestinal microbiome being blamed on everything from depression to obesity. The lawsuit claims that Monsanto misled ... Read More

Prime Health Care Settles Another Whistleblower Lawsuit Alleging Medicare Fraud

Two employees of a Philadelphia hospital who filed a whistleblower lawsuit against the hospital’s parent company and its founder have helped the U.S. government recover $1.25 million in Medicare funds. Prime Health Care Services and Dr. Prem Reddy, the company’s founder and CEO, agreed to settle the whistleblower lawsuit Feb. 14, resolving allegations that two of its hospitals, Lower Bucks Hospital in Bristol Township, Pennsylvania, and Roxborough Memorial Hospital in Philadelphia, engaged in schemes to increase their Medicare billings. According to federal prosecutors, the whistleblowers alleged that the hospitals admitted Medicare beneficiaries who visited the ER when they should have ... Read More