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Consumer Fraud 1437 articles

Defense Contractor Pays $7.8 Million To Resolve Fraud Allegations

A defense contractor has agreed to pay $7.8 million to settle allegations with the U.S. government that it illegally exploited military contracts set aside for small businesses. The U.S. Attorney’s Office for the Southern District of Georgia said that Arena Event Services Inc., which does business as Arena Americas, coordinated with Military Training Solutions LLC (MTS) to obtain the small business contracts. Congress mandates that a certain amount of government contracts go to small businesses as a way to encourage small business growth. These contracts prohibit the small business from being affiliated with a non-small business, while also limiting the ... Read More

AmerisourceBergen Pays U.S. $625 Million, Resolving Illegal Drug Repackaging Scheme

AmerisourceBergen Corp. and four subsidiary companies will pay $625 million to settle allegations that they ran a profiteering scheme that involved buying sterile vials of drugs from manufacturers, breaking them open, pooling the contents, and then repackaging them into pre-filled syringes. AmerisourceBergen, a drug wholesaler that ranks number 11 on the Fortune 500 list, provided the illegally repackaged drugs to physicians treating cancer patients, the U.S. Department of Justice said in its announcement of the settlement. Federal prosecutors alleged that AmerisourceBergen profited by skimming drug overfill from the FDA-approved sterile vials and repacking them into pre-filled syringes. They said the ... Read More

DaVita’s HealthCare Partners Pays $270 Million to Settle Medicare Fraud Allegations

HealthCare Partners Holdings, a unit of DaVita Medical Holdings, has agreed to pay $270 million to settle allegations stemming partly from a whistleblower lawsuit alleging the companies caused Medicare to overpay on insurance claims submitted by Medicare Advantage plan providers. According to the U.S. Department of Justice, HealthCare Partners, an independent physicians association based in California, contracted with insurance companies to provide medical services to Medicare Advantage patients. Unlike traditional Medicare, which pays health providers for patient services they provide to beneficiaries, Medicare Advantage Plans are paid a fixed, monthly amount to provide health care to Medicare recipients who enroll ... Read More

Class action filed against makers, distributors of contaminated BP drug

A St. Louis man filed a class action lawsuit against a number of drug companies for manufacturing and distributing certain blood pressure and heart failure medications containing the active ingredient valsartan that may have been contaminated with a probable carcinogen. James Jones filed the lawsuit in the U.S. District Court for the Eastern District of Missouri two months after the Food and Drug Administration (FDA) informed the public about the issue and announced the first wave of recalls of drugs that contained valsartan. Companies named in the lawsuit are Zhejiang Huahai Pharmaceutical Co. Ltd., Prinston Pharmaceuticals, Solco Healthcare U.S. LLC, ... Read More

Uber Agrees to Pay Record $148M To Settle Data Breach Coverup

Uber will pay $148 million to settle an investigation into a massive 2016 data breach that the ride-hailing company allegedly covered up by paying off the hackers. The nationwide settlement, led by California, is the largest-ever multi-state data breach settlement. The settlement funds will be divided equally among all 50 states and the District of Columbia. The data breach exposed the names, email addresses, phone numbers, and other personal information of 57 million Uber users, but the company did not disclose the hack until late 2017. Uber managed to keep the data breach out of public view until late 2017, ... Read More

Facebook Security Breach Affects 50 Million Accounts

Approximately 50 million Facebook accounts were hijacked by hackers through a vulnerability in the social media app’s “View As” feature, CEO Mark Zuckerberg said on Friday, Sept. 28. “On Tuesday, we discovered that an attacker exploited a technical vulnerability to steal access tokens that would allow them to log into about 50 million people’s accounts on Facebook,” Mr. Zuckerberg said in a Sept. 27 Facebook post. “This attack exploited the complex interaction of multiple issues in our code. It stemmed from a change we made to our video uploading feature in July 2017, which impacted ‘View As,'” said Guy Rosen, ... Read More

SEC Awards Overseas Whistleblower $4 Million

The U.S. Securities and Exchange Commission (SEC) said it has paid nearly $4 million to an overseas whistleblower whose “extensive assistance” helped regulators take a successful enforcement action against the offending company. “Whistleblowers, whether they are located in the U.S. or abroad, provide a valuable service to investors and help us stop wrongdoing,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower, in a Sept. 24 announcement. “This award recognizes the continued, important assistance provided by the whistleblower throughout the course of the investigation.” September has been an active month for the SEC’s Whistleblower program, which has been ... Read More

Flint Administrator’s Whistleblower Retaliation Suit Revived on Appeal

A former Flint, Michigan city administrator’s whistleblower retaliation complaint against the city has been revived by a federal appeals court. According to Michigan Radio, the U.S. Sixth Circuit Court of Appeals said there’s a key dispute over significant facts in Natasha Henderson’s whistleblower claim that a jury should sort out. “Henderson has mustered sufficient circumstantial evidence of a retaliatory motive to prevent summary judgment,” Circuit Judge Jane B. Stranch wrote in an opinion as part of a three-judge panel, according to MLive. In August 2017, U.S. District Court Judge Sean Cox dismissed Ms. Henderson’s complaint against the city of Flint, ... Read More

Pain Clinic Operator Busted for Opioid, Medicare Fraud

A nurse practitioner whose New Hampshire pain clinic wrote hundreds of opioid painkiller prescriptions for Medicare beneficiaries in “drive-by” office visits has pleaded guilty to charges of health care and prescription fraud, federal officials announced. New Hampshire U.S. Attorney Scott Murray said that Kristen Khanna, the operator of Total Pain Care and Wellness of Salem, New Hampshire, allowed a non-professional office worker to write opioid prescriptions to Medicare beneficiaries. According to the U.S. Attorney’s announcement, Ms. Khanna left the office employee with a pad of blank prescription forms that she signed. The employee would then fill them out and give ... Read More

Mercedes-Benz Sued Over Allegedly Dangerously Defective Transmissions

Certain Mercedes-Benz vehicles with 722.9 7G-Tronic transmissions are the basis of a class-action lawsuit alleging the transmissions have a dangerous defect that allows them to suddenly slip into low gear and fail prematurely. The class-action covers owners and lessees of Mercedes vehicles with the allegedly defective transmissions in California and Kansas. According to CarComplaints.com, the lawsuit alleges that technical service bulletins Mercedes sent to dealerships show that the automaker knew of the safety defect yet took no measures to warn its customers or recall the vehicles. The safety defect is so common that at one point Mercedes was unable to ... Read More