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Consumer Fraud 888 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.

35 states file antitrust lawsuit against drug companies alleging unlawful marketing of addiction treatment

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Thirty-five states and the District of Columbia are accusing British drugmaker Indivior of unlawfully manipulating the marketplace to maximize profits when it allegedly conspired to keep less expensive, generic versions of the narcotic addiction treatment Suboxone off the market, California’s attorney general announced. The states filed an antitrust lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against Indivior and MonoSol Rx, a New Jersey-based pharmaceutical dissolving-film company. In 2002, Indivior was granted exclusive rights to market Suboxone tablets until 2009. When the patent expired, the attorneys general claim that Indivior worked out a deal with MonoSol ... Read More

Cop’s False Claims Act Lawsuit Could Have Ripple Throughout Law Enforcement

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The U.S. Justice Department has called on the federal court in Boston to reconsider a False Claims Act lawsuit filed against the Brockton, Mass., Police Department by a police detective who alleges he was fired in retaliation for assisting someone who was falsely arrested. Former homicide detective Ken Williams, who has been with the Brockton Police Department for 15 years, filed the lawsuit under the whistleblower provisions of the False Claims Act in 2012. The Justice Department investigated Mr. Williams’ allegations but declined to intervene. The lawsuit was then unsealed and a federal judge dismissed some of its key allegations. ... Read More

Kindred Health Care Pays Record $3 Million For Failure To Comply With Integrity Agreement

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Kindred Health Care Inc., the nation’s largest provider of hospice services, home health care services, and other post-acute care, has paid a $3 million penalty to the U.S. for its failure to comply with a Corporate Integrity Agreement imposed after a previous False Claims Act settlement. The penalty is the largest the Department of Health and Human Services (HHS) Office of Inspector General has ever levied against a company for its failure to meet the requirements of a Corporate Integrity Agreement, which are designed to prevent companies from defrauding federal agencies and programs. According to the HHS, the record penalty stemmed ... Read More

SEC Awards Whistleblower More Than $4 Million

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The U.S. Securities and Exchange Commission (SEC) announced Tuesday that it has awarded a whistleblower more than $4 million for providing insider tips and information that alerted regulators to fraud. The award caps off a successful summer for the SEC whistleblower program, which was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and launched in 2011. In June, the SEC announced a series of fraud-related settlements that resulted in awards of more than $26 million for whistleblowers. In August, the agency awarded more than $22 million to a Monsanto whistleblower, which pushed the SEC whistleblower ... Read More

California Nursing Home Operator, Execs to Pay U.S. $30 Million For Fraudulent Medicare Billings

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A California-based nursing home operator and two of its executives have agreed to pay the U.S. $30 million to resolve a False Claims Act lawsuit accusing the company of billing Medicare and other government health care programs for medically unnecessary rehabilitation therapy services. Under the terms of the agreement announced Monday, North American Health Care Inc. of Orange County, Calif., will pay the U.S. $28.5 million. The company’s chairman of the board, John Sorenson, will pay $1 million toward the settlement, and senior vice president of Reimbursement Analysis, Margaret Gelvezon, will pay $500,000. North American Health Care is a private, ... Read More

Illinois Home Health care Company Owner Pays $6.8 Million, Faces Prison Time For Kickback Scheme

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The owner of an Illinois-based home health care company admitted in federal court last week that he paid illegal kickbacks to 20 medical directors to acquire referrals of elderly Medicare patients. Between December 2006 and September 2014, Romy Macasaet Jr., owner of Home Bound Healthcare Inc. of Lemont, Ill., paid more than $789,000 in bribes to the medical directors who sent Medicare patients his way in exchange for the money. The illegal kickbacks resulted in Mr. Macasaet receiving Medicare reimbursements worth millions of dollars, according to U.S. Attorney for the Northern District of Illinois Zachary Fardon. Mr. Macasaet used various agreements ... Read More

Engineer Who Developed VW’s Emissions Cheat Pleads Guilty To Criminal Charge

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A Volkswagen engineer has pleaded guilty for his role in developing and implementing a software system that allowed the German automaker’s diesel-powered vehicles to cheat U.S. emissions tests for nearly a decade. James Robert Liang, 62, of Newburg Park, Calif., pleaded guilty to a single count of conspiracy to defraud the United States, to commit wire fraud, and to violate the Clean Air Act for his role in the emissions cheat. If convicted, Mr. Liang faces up to five years in prison and a $250,000 fine. Mr. Liang worked in VW’s diesel development department in Wolfsburg, Germany, from 1983 through mid-2008. ... Read More

Florida Pain Clinics Pay $7.4 Million To Settle Billing Fraud Case

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Coastal Spine and Pain, an operator of 10 pain-management clinics in the Jacksonville, Fla., area, has agreed to pay the U.S. government $7.4 million to settle a False Claims Act lawsuit alleging its clinics performed medically unnecessary and costly drug screening procedures to boost its reimbursements from Medicare and other federal health care programs. The settlement relates to Coastal’s routine use of “quantitative drug tests,” which identify and count particles of illicit drugs in a patient’s urine. The use of these very specific and extremely costly tests is appropriate only when there is reason to doubt the results of more general ... Read More

Overtime pay expansion for farm workers approved by California lawmakers

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California farmers are known for being some of the largest exporters of produce in the nation and now state lawmakers have passed an overtime pay bill to ensure these farmers are paid in accordance to their grueling labor. The overtime bill, if passed by the governor, would make California the first state to require the agricultural industry to meet Fair Labor Standards Act (FLSA) standards already adhered to by most other industries. The new overtime law, which passed by a 44-32 vote, would take action in 2019 by gradually expanding overtime pay to all of California’s estimated 825,000 farm laborers. ... Read More

Medical Supplier, Two Execs Pay $12 Million To Resolve FCA Medicare Fraud Suit

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U.S. Healthcare Supply LLC and two executives will pay the U.S. government $12.2 million to resolve allegations that they violated the federal False Claims Act by creating and using a fictitious company to solicit Medicare beneficiaries in an effort to sell them costly medical equipment. The U.S. Justice Department said Milford, N.J.-based U.S. Healthcare Supply has agreed to pay $5 million plus interest to settle the allegations, and John Letko, the company’s owner and president, will pay $1 million plus interest. His brother, Edward Letko, owner and president of Oxford Diabetic Supply, will pay the U.S. $6 million plus interest to ... Read More