Consumer Fraud 914 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.

Omnicare To Pay $28 Million To Settle Abbott Kickback Allegations

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Omnicare Inc., the nation’s largest nursing home pharmacy, has agreed to pay the U.S. government more than $28 million to settle whistleblower allegations that it solicited and received kickbacks from drugmaker Abbott Laboratories in exchange for promoting the anti-seizure drug, Depakote, for nursing home patients. Nursing homes rely on pharmacy benefit management companies like Omnicare to review their residents’ medical charts at least monthly and make recommendations to their physicians about what drugs should be prescribed for those residents. Omnicare’s most recent settlement resolves accusations that it received several millions of dollars in kickbacks from Abbott in exchange for pushing Depakote on ... Read More

Rental Car Insurer Can’t Hide Behind Avis For Overcharges, Class Action Argues

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The lead plaintiff in a proposed class action lawsuit accusing Ace American Insurance Co. of charging tax and hidden fees on optional insurance for vehicles rented at Florida airports has asked the presiding judge not to dismiss the case, arguing the insurer is trying to escape its liability for the fees by claiming the Avis car rental agency imposed the charges. Plaintiff Stephen Morgan, who is represented by the Beasley Allen law firm, filed the class action against Ace after he reserved a car through Avis Rent A Car at the Jacksonville International Airport. Mr. Morgan rented the car for ... Read More

U.S. Investigating Whistleblower’s Fraud Allegations Against South Carolina Hospital System

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The U.S. Department of Justice (DOJ) is investigating claims made by a whistleblower in a False Claims Act lawsuit alleging that a South Carolina hospital system defrauded Medicare, Medicaid, and Tricare by entering into unlawful financial relationships with physicians to acquire referrals and boost government billings. Elisabeth Markley, a former Spartanburg Regional Healthcare System (SRHS) physician compensation coordinator, filed the whistleblower lawsuit in federal court in Greenville, S.C., Sept. 25, 2015. Ms. Markley accuses the hospital system of acquiring several medical practices and overpaying the physicians in them with the understanding that those physicians would refer patients to SRHS for ... Read More

Senator Warren Urges Obama To Oust SEC Chair Mary Jo White

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U.S. Senator Elizabeth Warren (D-Mass.) has called on President Barack Obama for the immediate removal of Mary Jo White as head of the Securities and Exchange Commission (SEC), saying the chair’s actions and polices undermine and harm investors. Sen. Warren, who has become one of the fiercest pro-consumer advocates in the Senate, asked Obama to use his unilateral authority to remove and replace Chair White for her refusal to develop a political spending disclosure rule and other policies to boost transparency within the agency. In her letter, Sen. Warren noted that Congressional Democrats and the Administration have strongly opposed a ... Read More

Comcast Pays Record Fine For allegedly Billing Customers For Services, Equipment They Never Ordered

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Cable giant Comcast has agreed to pay a record $2.3 million civil penalty, closing a federal investigation into widespread allegations the company defrauded customers for equipment and services they never ordered. The Federal Communications Commission (FCC) said that its Comcast investigation centered on a fraudulent practice known as “negative option billing” or “cramming,” in which corporations sign customers up for equipment and services without their consent and then burden them with the responsibility of canceling the unwanted services, disputing charges, and obtaining refunds. “Some Customers alleged they specifically declined the new products offered by Comcast but were nonetheless charged for ... Read More

EpiPen Maker’s $465 Million Settlement Just the Beginning of Its Legal Troubles

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The $465-million settlement drugmaker Mylan agreed to pay last week to end a federal probe into whether it grossly overcharged Medicaid for EpiPen injections by misclassifying them may be just the beginning of the controversial drug company’s EpiPen problems. The U.S. Securities and Exchange Commission (SEC) has called on Mylan to provide it with copies of its communications with the Centers for Medicare and Medicaid Services  (CMS) regarding the company’s classification of the EpiPen for Medicaid purposes. Federal law requires pharmaceutical companies to pay Medicaid rebates of 13 percent for generic drugs and 23.1 percent for branded drugs, which cost ... Read More

Toxicology Lab To Pay Vermont $6.75 Million To Resolve Allegations of Medicaid Fraud

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A Vermont toxicology laboratory has agreed to pay the State of Vermont $6.75 million to settle allegations that it defrauded the Vermont Medicaid program by overbilling it for laboratory tests. Vermont Attorney General William Sorrell said the settlement agreement ends an investigation by his office’s Medicaid Fraud and Residential Abuse Unit of Burlington Labs, a partnership of Burlington Laboratories Inc. and Burlington Labs LLC, for their Medicaid billings between January 2015 through June 2015. The AG’s office says during that time, Burlington Labs varied the amount it charged the state’s Medicaid program depending on the number of drugs it tested, and violated ... Read More

Tenet Hospitals Pay $513 Million To Settle Whistleblower Suit Alleging Kickbacks, Medicaid Fraud

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Tenet Healthcare Corporation and two of its Atlanta-area subsidiaries have agreed to pay the U.S. government $513 million to settle criminal and civil allegations that they entered into illegal kickback and bribery schemes designed to boost the volume of low-income patients on Medicaid. Under the settlement, Atlanta Medical Center Inc. and North Fulton Medical Center Inc. agree to plead guilty to conspiracy to defraud the U.S government and violate federal anti-kickback laws by providing kickbacks and bribes to prenatal clinics in exchange for obstetric referrals. The Tenet hospitals set their sights on prenatal clinics serving mostly low-income, undocumented Hispanic women ... Read More

Arizona Hospital Pays Nearly $6 Million To Settle Whistleblower’s False Claims Act Suit

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Yavapai Regional Medical Center of Prescott, Ariz., has agreed to pay the U.S. government $5.85 million to resolve a False Claims Act lawsuit brought by a whistleblower who alleged the hospital misreported the number of hours its employees worked, falsely inflating Medicare reimbursements it received. The lawsuit, filed by in April 2016 by Gregory Kuzma, alleged that Yavapai Regional Medical Center’s misreporting of hours inflated the wage index for the Prescott area, which Medicare uses to calculate payments. The lawsuit also alleged that as a result of Yavapai’s false claims, federal health care programs paid substantially more to the hospital ... Read More

EpiPen Manufacturer Reaches $465-Million Deal To End Medicaid Overpricing Probe

Epi Pen

Mylan Inc. reached a $465-million agreement with the U.S. Department of Justice (DOJ) Friday, bringing an end to a federal investigation that it cheated Medicaid programs by misclassifying its EpiPen emergency allergy injections as a generic drug. The settlement comes after Congressional hearings looking into whether Mylan had falsely classified the EpiPen as a generic drug so that the rebates it provided to the Medicaid program would be substantially lower. Federal law requires pharmaceutical companies to pay Medicaid rebates of 13 percent for generic drugs and 23.1 percent for branded drugs, which cost much more than generics. Mylan argued that ... Read More