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Worker amputation results in lawsuit against machine manufacturer

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A woman who lost five fingers in an amputation incident while attempting to clean an industrial yarn machine filed a lawsuit against the machine’s manufacturer, holding them responsible. Mary Lynn Stanco, a Pittston Township, Pennsylvania, resident, was working as a threader at Warp Processing Co., Inc in Exeter. The warping machine she often uses produces large volumes of yarn on spinning beams at a speed of 450 yards per minute. According to the lawsuit, Stanco was assisting a mechanic who was working on a warping machine in April 2016. When the mechanic pointed out a dirty presser roller, Stanco attempted to ... Read More

U.S. Appeals Court Says Vanguard Whistleblower Lawsuit Should Be Heard

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A former in-house tax lawyer for investment giant Vanguard Group should have his whistleblower retaliation complaint heard, the U.S. Third Circuit Court of Appeals has ruled. The appeals court ruled last week that the U.S. District Court in Philadelphia should reconsider David Danon’s lawsuit against his former employer alleging the mutual-fund behemoth fired him for voicing his objections over federal and state income tax underpayments. Mr. Danon says Vanguard’s alleged underpayments amounted to billions of dollars. Mr. Danon claims Vanguard violated the whistleblower protections under the Dodd-Frank Act of 2010 when it wrongfully terminated him. Writing for the three-judge panel, ... Read More

Jellyfish protein supplement maker defends memory boosting benefits in court

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Wisconsin-based Quincy Bioscience told a New York federal court that its advertisements promoting the memory boosting effects of a jellyfish protein are not false or misleading because they are based on the Federal Trade Commission’s (FTC) “gold standard of scientific testing.” The company is facing claims by the FTC and the New York Attorney General’s Office that the company’s cited studies are not valid because they use specific subgroups. Quincy Bioscience argued that it referenced placebo-controlled, double-blind studies to prove the jellyfish protein offered cognitive benefits to users. Quincy Bioscience’s jellyfish protein is sold under the name brand Prevagen and ... Read More

Dietary supplement maker fined for questionable marketing scheme

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The owner of two dietary supplements companies settled a lawsuit with the Federal Trade Commission (FTC) over a marketing scheme and false claims regarding its diet pills. The proposed order was filed against Colby Fox and his companies Tachht Inc., and Teqqu LLC, in the U.S. District Court for the Middle District of Florida, Tampa Division. According to the complaint, Fox and his companies paid affiliate marketers to illegally send millions of spam emails to consumers from hacked email accounts. The emails were designed to look like notes from the consumers’ family and friends with links directing consumers to Fox’s websites ... Read More

Maker of diet pill tries to skirt criminal, civil charges

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Three years ago the diet pill OxyELITE Pro was blamed for two deaths, three liver transplants and about 50 hospitalizations for liver failure and other health issues in Hawaii. Now the dietary supplement maker, in an attempt to skirt civil and criminal charges, is taking aim at the Queen’s Medical Center and the state’s Department of Health over how they handled the sickened patients. Last year, a federal grand jury in Dallas, Texas where USPLABS is based, indicted the company’s top executives for conspiracy to commit wire fraud and for importing shipments from China using fake documents. Now the company is ... Read More

Former FDA chief to testify on Xarelto makers’ conduct

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In January 2015, former Food and Drug Administration (FDA) Commissioner David Kessler testified in a Philadelphia court that five years before Johnson & Johnson subsidiary Janssen Pharmaceuticals added warnings to its antipsychotic Risperdal regarding a side effect involving disfiguring breast growth in adolescent boys, the company was aware of its danger to minors. It was the first bellwether trial among thousands involving claims that Janssen tried to cover up Risperdal side effects. Kessler testified that Risperdal “probably or very likely” triggered breast growth in boys – a condition called gynecomastia. He backed up that claim by referencing a 2001 study ... Read More

Talc litigation asks when to warn consumers of health risks

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An attorney analyzing the legal landscape for the Claims Journal used the talc litigation to examine the issue of failure to warn. He concluded that manufacturers and their insurers can’t assume that the argument that they are waiting on a scientific consensus about an alleged risk associated with their product will protect them from liability. In spite of the fact that scientists are still studying the effects of talc on the female reproductive system and that there is debate over how to interpret the decades of research that has already been done, three juries in 2016 found Johnson and Johnson to be liable ... Read More

Forklift accident at San Francisco building supply company claims worker’s life

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A San Francisco building supply company has been ordered to pay a $62,000 fine for several safety violations that led to the death of a worker in a forklift accident last November. In an area called the Dogpatch neighborhood, the accident occurred on Nov. 21 at Good View Roofing & Building Supply Co that killed Ruan Qiang, a resident of South San Francisco. Qiang was moving a load of building supplies from the company’s warehouse to a customer’s car using a forklift, a 5-ton vehicle the company often uses for heavy lifting. According to Cal-OSHA, a bag of mortar mix fell from the load and landed ... Read More

Alabama company Pays New York State $40 Million To Settle False Claims Act Tax Fraud Case

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An Alabama investment group and some of its top executives have agreed to pay New York State $40 million to settle a New York False Claims Act lawsuit brought by a whistleblower who claimed the company committed tax fraud, cheating New York out of millions of dollars in taxes. The settlement is the largest-ever recovery of its kind since New York’s False Claims Act law was expanded to include tax claims. It resolves allegations that Birmingham-based Harbert Management Corporation, sponsor of Harbinger Capital Partners, a $26 billion New York City-based hedge fund, failed to pay millions in state taxes on ... Read More

Lawsuits allege Xarelto is unreasonably dangerous in design

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Johnson & Johnson’s Janssen Pharmaceuticals and Bayer face a potential $2.5 billion in potential liability over uncontrolled bleeding allegedly caused by their blockbuster blood thinner Xarelto. More than 16,000 cases are pending in a multidistrict litigation (MDL) in Louisiana, with the bellwether scheduled to start next week. U.S. District Judge Eldon E. Fallon shot down a preemption argument in a defense summary, which allowed state-law design-defect claims by those suing drug companies to move forward. Janssen and Bayer had argued that the defective design claims are preempted by federal law, and that it would be virtually impossible for them to ... Read More