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.
A former in-house tax lawyer for investment giant Vanguard Group should have his whistleblower retaliation complaint heard, the U.S. Third Circuit Court of Appeals has ruled. The appeals court ruled last week that the U.S. District Court in Philadelphia should reconsider David Danon’s lawsuit against his former employer alleging the mutual-fund behemoth fired him for voicing his objections over federal and state income tax underpayments. Mr. Danon says Vanguard’s alleged underpayments amounted to billions of dollars. Mr. Danon claims Vanguard violated the whistleblower protections under the Dodd-Frank Act of 2010 when it wrongfully terminated him. Writing for the three-judge panel, ... Read More
The owner of two dietary supplements companies settled a lawsuit with the Federal Trade Commission (FTC) over a marketing scheme and false claims regarding its diet pills. The proposed order was filed against Colby Fox and his companies Tachht Inc., and Teqqu LLC, in the U.S. District Court for the Middle District of Florida, Tampa Division. According to the complaint, Fox and his companies paid affiliate marketers to illegally send millions of spam emails to consumers from hacked email accounts. The emails were designed to look like notes from the consumers’ family and friends with links directing consumers to Fox’s websites ... Read More
An Alabama investment group and some of its top executives have agreed to pay New York State $40 million to settle a New York False Claims Act lawsuit brought by a whistleblower who claimed the company committed tax fraud, cheating New York out of millions of dollars in taxes. The settlement is the largest-ever recovery of its kind since New York’s False Claims Act law was expanded to include tax claims. It resolves allegations that Birmingham-based Harbert Management Corporation, sponsor of Harbinger Capital Partners, a $26 billion New York City-based hedge fund, failed to pay millions in state taxes on ... Read More
HSBC Bank USA has agreed to pay the U.S. more than $2 million to settle a False Claims Act lawsuit filed by a whistleblower who alleged the bank sought reimbursement from the U.S. Small Business Association (SBA) for loans it knew to fraudulent or based on fraudulent information. The SBA operates a loan program called SBAExpress, which guarantees lenders half the value of loans they make to start-ups and other small businesses. The program is designed to incentivize banks to loan to small businesses by reducing risk, spurring economic development and growth. The False Claims Act complaint, filed by whistleblower ... Read More
The state of Massachusetts is backing a whistleblower lawsuit against Universal Health Services (UHS), alleging the Pennsylvania-based hospital network submitted false claims to the state’s Medicaid program. The state’s intervention in the case builds on allegations originally brought by the parents of a teenage girl who died in 2009 after having an adverse reaction to medication prescribed to her by an employee of Arbour Counseling Services, a unit of UHS in Lawrence, Massachusetts. The complaint alleges that the Arbour Counseling employee who prescribed the medication to the teen was unqualified to dispense drugs. A subsequent investigation into the complaint found ... Read More
The Virginia Department of Social Services (VDSS) will pay $7.15 million to resolve a False Claims Act lawsuit that accused it of defrauding the federal government by manipulating data it provided to the U.S. for “food stamp” reimbursements. U.S. authorities, including the USDA Office of Inspector General, the U.S. Justice Department’s Commercial Litigation Branch, and the U.S. Attorney’s Office for the Western District of Wisconsin, filed the False Claims Act suit after a nationwide audit of the Supplemental Nutrition Assistance Program (SNAP) uncovered suspicious activity within VDSS’ processing and administration of SNAP benefits. The U.S. government funds SNAP benefits, but ... Read More
A former horse handler for the Philadelphia Police Department’s Mounted Patrol Unit who accused the city and his commander of retaliating against him for voicing his concerns about the lack of exercise some horses were getting has won a whistleblower lawsuit. Joel Allen, whose father was a mounted police officer in the 70s and 80s, filed a formal complaint against his commanding officer in 2014 out of a concern for the horses in his care. According to The (Philadelphia) Inquirer, Mr. Allen became a hostler for the Philadelphia Police Department’s Mounted Patrol unit in 1986. The civilian job involves cleaning, ... Read More
This isn’t SanMedica International LLC’s first time at the rodeo, so to speak. The human growth supplement maker managed to skirt a previous complaint that it lied about the effectiveness of its dietary supplement, so a new, nearly identical putative class action suit should be dismissed on the same grounds, SanMedica International argued to a California federal court. Both cases involved the same anti-aging product manufactured by SanMedica International called SeroVital-hgh. The first suit, Kwan v. SanMedica International LLC, was dismissed for lack of evidence. The new class action filed by Paul Martin doesn’t provide better evidence to substantiate the ... Read More
A former manager of a water treatment plant is suing the city of Apopka, Florida, in federal court, alleging he was terminated as punishment for raising concerns about poor working conditions at the plant and conditions that threaten public health and safety. Whistleblower Glen Brooks, who worked at the Apopka water treatment plant for 14 years before he was fired in September, says the city’s newly elected mayor in 2014 conspired with three other city officials to “cover up and violate the law as to the illegal conduct and unsafe conditions” at the plant. The complaint also claims the same ... Read More
Brooklyn mother Paulina Rodriguez fed her daughter Enfamil infant formula. Shortly afterward, the baby became gravely ill with high fever, vomiting and diarrhea. She rushed her daughter to the emergency room and the baby was later hospitalized. Over the course of a week, the baby’s health improved and she was sent home. A week later, Rodriguez opened another can of Enfamil to feed her baby and found insects crawling around inside. She called Enfamil’s maker Mead Johnson & Co. requesting an investigation and learned that the entire shipment of Enfamil that was sent to her local Key Foods retail store had ... Read More