Consumer Fraud 746 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.

Lyft class action settles for $12.25M; adds benefits for drivers

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A recent class action settlement in California means that drivers for Lyft will be granted extra workplace protections. Despite not being classified as full employees under the Fair Labor Standards Act (FLSA), Lyft drivers are now eligible for specific benefits without endangering the company’s business model. According to the Lyft settlement agreement, Lyft drivers involved with the class action are splitting the settlement’s sum of $12.25 million and receiving multiple benefits, including new rules regarding driver deactivation. Before the settlement, Lyft drivers could be removed from the company’s system without warning, such as for low passenger ratings. The new rules ... Read More

Feinberg Predicts Most VW Vehicle Owners Will Settle Through Compensation Fund


Volkswagen Claims Fund administrator Kenneth Feinberg said he is ready to start compensating owners of VW diesel vehicles affected by the automaker’s emissions cheat, predicting that most all of the nearly 600,000 owners would accept offers from the fund. However, Mr. Feinberg told a German newspaper that his “hands are tied” until VW leaders and U.S. environmental regulators have agreed on a plan to repair the vehicles. Mr. Feinberg has not yet disclosed what options VW owners will be given, as much of what the company offers pivots on an acceptable solution to the emissions cheat, which allows certain diesel ... Read More

Gender discrimination lawsuit returns $130K for each of the three female plaintiffs


Gender discrimination in the workplace may seem to be an antiquated subject, but many Americans would be surprised to know how relevant the issue still is today. Last month, three Minnesota women won a gender discrimination case after losing their chauffeur jobs due to a Saudi prince’s demand that he only be chauffeured by males. According to the Insurance Journal, Gretchen Cooper, Barbara Herold and Lisa Boutelle were all awarded $130,000 when U.S. District Judge Joan Ericksen ruled in favor of the three wrongfully discharged women. The damages are broken down into $100,000 each for mental anguish and suffering under ... Read More

Defense Subcontractor Pays $7.4 Million To Resolve Whistleblower Allegations Of Billing Fraud


A defense subcontractor hired to provide firefighting and fire protection services in Iraq will pay the U.S. $7.4 million to settle a whistleblower complaint accusing it of falsely inflating labor costs and double-billing the government for its work. Centerra Services International, formerly known as Wackenhut Services LLC, is a security services company based in Palm Beach Gardens, Fla. The company was subcontracted by Kellogg Brown & Root Inc. (KBR), the primary contractor providing logistical support for the Army’s operations in Iraq. From 2008 to 2010, Wackenhut not only inflated its labor costs for billing, but it double billed for the ... Read More

Florida Radiology Chain Settles whistleblower Medicare Fraud Case For $8.71 Million

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TAMPA, FLA — Rose Radiology Centers Inc. will pay $8.71 million to the government to settle allegations that it violated the False Claims Act by billing federal health care programs for radiology procedures that patients didn’t need or were rendered in an “unconscionable” way that violated federal rules for reimbursement. Rose Radiology operates about a dozen offices in the Tampa area and provides all of the radiology services for the Tampa Bay Rays baseball team and Tampa Bay Lightning hockey team, according to the Tampa Bay Times. The settlement resolves allegations originally brought in a lawsuit filed by two whistleblowers ... Read More

Oregon Health Care Provider Sued For Medicare Fraud, Whistleblower Retaliation

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The former CEO of Architrave Health, LLC, a major Oregon health care provider, filed a whistleblower lawsuit against the company Tuesday, alleging he was terminated and then blacklisted in the medical community as punishment for reporting millions of dollars in fraudulent Medicare billings and improper financial relationships with local physicians. According to The Oregonian, the Medicare fraud accusations made by Dr. Robert Dannenhoffer against Architrave are potentially “explosive” in a state that prides itself for its “progressive healthcare reform.” If is claims stand up in court, The Oregonian reports, it means “a major medical provider was prepared to look the ... Read More

DOL orders Calif. sushi restaurant chain to pay more than $620K in FLSA violations


Following a federal investigation by the U.S. Department of Labor (DOL), Cerritos, Calif., based sushi and ramen restaurant chain Gatten Sushi, as well as its sister company GTN, has been ordered to pay more than $620,000 in back wages and damages. Gatten Sushi, which employs approximately 400 employees across 11 different restaurants in both Los Angeles and Orange counties, was found guilty of a number of different Fair Labor Standards Act (FLSA) violations. Some of the FLSA violations noted by the investigation varied from shaving hours on employees’ timecards to help reduce paychecks to even regularly docking employee pay for ... Read More

Former Dean Accuses ITT Technical Institute Of Defrauding Students, Federal Government


If a whistleblower lawsuit filed by a former dean against the for-profit college chain ITT Technical Institute is accurate, then the school’s recruiters have been making some outlandish claims and misrepresentations to prospective students in a drive to boost enrollment. Rodney Lipscomb, former dean of academic affairs at ITT’s Tallahassee, Fla., campus, filed a False Claims Act lawsuit on behalf of the U.S. government, alleging the college fired him as punishment for repeatedly raising concerns about systematic practices recruiters and administrators implemented to defraud the federal government and students alike. Mr. Lipscomb claims that ITT recruited students who were not ... Read More

Cybersecurity in medical devices: FDA addresses device manufacturers in updated guidance


As more cybersecurity concerns continue to threaten our country, the U.S. Food and Drug Administration (FDA) has updated its guidance on how medical device makers can ensure their approved products are safe from cyberattacks and report any post-approval fixes. According to Law360, the FDA’s announcement adds to a prior document highlighting the dangers associated with medical device software. The agency also held a public workshop Jan. 20-21 at its Silver Spring, Md., campus to discuss how different sectors can work together and reduce risks with Internet-connected medical devices. The FDA is emphasizing the importance of post-approval vigilance due to the growing tactics used by ... Read More

SEC Awards Industry Analyst $700,000 For “Outsider” Whistleblower Tips

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The U.S. Securities and Exchange Commission (SEC) will pay a whistleblower award of more than $700,000 to a company outsider who conducted a detailed analysis of misconduct that led the agency to a successful enforcement action. SEC documents indicate this case may be the first time the agency’s whistleblower office has successfully taken action against a company based on tips provided by someone outside of the offending company — in this case, a financial industry analyst. “The voluntary submission of high-quality analysis by industry experts can be every bit as valuable as first-hand knowledge of wrongdoing by company insiders,” said ... Read More