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.
Two whistleblowers will share an award of nearly $3 million for helping the U.S. government recover $13 million from a defense contractor and several subcontractors that allegedly defrauded the government by inflating military-related shipping charges in various ways. Plaintiffs Richard Ricks, 58, and Marcelo Cuellar, 30, who work for different companies, joined forces to file a False Claims Act lawsuit against Menlo Worldwide Services Inc., its units Menlo Logistics Inc., Con-Way Inc., and XPO Logistics Inc., and Estes Forwarding Worldwide LLC and its parent company Estes Express Lines. The Department of Defense (DOD) contracted the Menlo and Estes companies to ... Read More
A New Orleans federal jury convicted the owner of a health care company Saturday for orchestrating a scheme to defraud Medicare through false and inflated billings and illegal kickbacks. Federal prosecutors alleged that Tracy Richardson Brown, 46, owner and operator of a durable medical equipment supply company called Pslams 23 DME LLC, cost U.S. taxpayers $1.9 million in fraudulent schemes she conducted in and around New Orleans. U.S. attorneys produced evidence that Ms. Brown and her company billed the Medicare program for medical equipment and orthotics that they never provided to patients. The U.S. also alleged that Ms. Brown and ... Read More
The U.S. government reached a $21-million settlement Friday with two medical product companies, resolving whistleblower allegations that they engaged in mutually beneficial kickback schemes and other “fraudulent conduct” to boost profits. Hollister Inc., a manufacturer of disposable health care products, agreed to pay the U.S. $11.4 million to settle the False Claims Act complaint, while Byram Healthcare Centers Inc., a medical goods supplier, will pay the U.S. $9.37 million and the State of California $127,117. The settlement with Hollister resolves allegations that it paid kickbacks to Byram in return for marketing promotions, campaigns, and other unlawful referrals of patients to ... Read More
Two U.S. Senators introduced bipartisan legislation April 27 that would require the Department of Defense (DOD) to provide initial entry service members with American-made athletic shoes upon arrival at basic training as part of the overall effort to ensure the troops are equipped and outfitted with high-quality, domestically manufactured products whenever possible. Known as the Buy American Act of 2016, the proposed bill would mandate that the Department of Defense comply with U.S. regulations mandating that the U.S. military provide service members with American-made equipment and uniforms. The Berry Amendment, passed in 1941, imposes these requirements on the Defense Department ... Read More
Los Angeles, California-based furniture seller Z Gallerie will pay the U.S. $15 million to resolve a False Claims Act lawsuit brought by a whistleblower who accused the company of mislabeling shipments of wooden bedroom furniture made in the People’s Republic of China to avoid paying appropriate customs duties that protect domestic furniture makers. Federal prosecutors said that Z Gallerie, which sells upscale furniture and accessories in stores throughout the U.S. and online, misclassified and conspired with others to misclassify wooden bedroom furniture, which is subject to anti-dumping duties. These duties are assessed by the U.S. Department of Commerce to protect ... Read More
Drug companies Wyeth and Pfizer Inc. have agreed to pay the United States $784.6 million to settle a whistleblower’s False Claims Act lawsuit alleging they “created elaborate pricing schemes to deceive Medicaid into paying more than it should” for proton pump inhibitor (PPI) drugs, federal prosecutors announced Wednesday. According to the whistleblower complaint, Wyeth sold Protonix Oral and Protonix IV to hospitals through a bundling arrangement that provided deep discounts on the drugs if hospitals placed them on their formulary and made them available within the hospital. These bundling arrangements induced hospitals to buy Protonix Oral, a form of the drug ... Read More
Days after admitting it manipulated mileage test data on hundreds of thousands of cars it made in the last three years, Mitsubishi made a stunning announcement Tuesday that it has been overstating fuel economy in millions of its vehicles made and sold over the last 25 years. The scope of Mitsubishi’s fuel-economy scandal is so massive that company officials said they don’t know yet just how many cars and trucks with overstated mileage it has sold over the past quarter century. The problem also potentially affects millions of Nissan vehicles made by Mitsubishi in a joint venture. In fact, Nissan ... Read More
Angie’s List, the crowd-based review site for local businesses, is being taken to court by former employees claiming the company withheld overtime pay and, in several incidents, requested employees not report overtime hours. According to the federal lawsuits being weighed against the company, many employees were forced to work under very aggressive sales goals, some of which would require employees to sell a high amount in advertising, said Indianapolis lawyer Kathleen Delaney. Delaney is currently representing 17 of Angie’s List past employees, all of whom claim to have been trained to do “whatever it takes” to meet their aggressive goals, despite ... Read More
A recent car crash in the Boston area is once again stoking concerns about the safety of some guardrails made by Trinity Industries, a Texas company that is currently appealing a jury verdict that sided with a whistleblower who warns the roadside safety devices are defective and dangerous. Boston’s WCVB 5 shared its footage of a February crash that occurred in Randolph, Mass., with whistleblower Joshua Harman, who successfully sued Trinity on behalf of the federal government, alleging the manufacturer secretly changed the design of its already-approved guardrails without telling the government. Mr. Harman says those alterations, carried out as ... Read More
A Toccoa, Ga., dermatology clinic and two physicians have agreed to pay the U.S. $1.9 million to settle a False Claims Act lawsuit alleging Medicare fraud. The lawsuit alleged they billed Medicare for patient evaluation services that were not eligible for reimbursement under Medicare rules. According to the U.S. Attorney in Atlanta, dermatologists Margaret Kopchick, M.D., and Russell Burken, M.D., and their practice group, Toccoa Clinic Medical Associates billed for evaluation and management services performed on the same day as a related procedure. Federal prosecutors said the billing practices violated Medicare rules, which prohibit doctors from billing for evaluation and ... Read More