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settlement 169 articles

Takata Clears Exit from Bankruptcy With Airbag Settlement

Takata Corp.’s U.S. unit has reached a settlement with current and future airbag victims, creditors, and automakers that will clear a path out of its Chapter 11 bankruptcy, which was brought on last year amid the spiraling scope and costs of its airbag recall. Saddled by recall costs and faced with numerous airbag injury and death claims, Takata was pushed to sell its viable operations to Key Safety Systems, a U.S.-based Chinese company, for $1.6 billion. The proceeds of the sale will help fund restitution claims filed by automakers and injury and death claims filed by people injured by defective ... Read More

Harbor Freight class action settlement benefits customers that purchased items misrepresented as discounted

Harbor Freight, a discount tool retailer headquartered in California, will be giving shoppers up to 30 percent back on their purchases following a class action settlement. The suit alleges Harbor Freight lied when it advertised items at “sale” or “compare at” prices, despite the products having never been sold at a higher price point. According to AL.com, the settlement will cover purchases made from April 8, 2011, through Dec. 15, 2016. Any consumer with itemized receipts from Harbor Freight showing the “you saved” amount may receive either 20 percent of that amount in cash, or 30 percent in Harbor Freight ... Read More

Takata To Pay $1 Billion in Fines, Restitution For Airbag Scandal

Japanese auto supplier Takata will plead guilty to one criminal charge in Detroit Monday and pay a $1 billion in penalties and restitution to resolve allegations that it covered up a deadly airbag defect. The settlement requires that Takata allocate $125 million to a victims’ compensation fund, $850 million to automakers whose vehicles have been affected by the airbag defect, and a $25 million criminal fine. Additionally, the U.S. Department of Justice indicted three Takata executives for their roles in the alleged cover-up. Federal prosecutors claim that the executives falsified test reports to conceal a flaw that can cause the ... Read More

Wright Medical Agrees to $240 Million Settlement Over Metal-on-Metal Hip Injury Claims

Wright Medical Group, a medical device manufacturing company based in Amsterdam, Netherlands, has entered into a settlement over litigation involving its metal-on-metal hip implants. The litigation included 1,292 claims that the company’s Conserve, Dynasty or Lineage hip implants resulted in revision surgeries. Wright also estimates that about 600 cases won’t be included in the settlement, and has stated that it will “vigorously defend” those that weren’t settled. The settlement is for an eye-popping $240 million – $60 million going to insurance recoveries, and $180 million to be paid in cash. Robert Palmisano, Wright’s own CEO, said he was glad to reach the settlement so that the company ... Read More

Amtrak Reaches $165 Million Settlement In Deadly Philly Derailment Case

Amtrak has agreed to pay $265 million to settle claims filed by victims of high-speed derailment in Philadelphia last year that killed eight passengers and injured more than 200 others. Federal judge Legrome Davis, Eastern District of Pennsylvania, approved the agreement Thursday morning. Although it is one of the largest settlements resulting from a rail disaster, it is $30 million less than Amtrak’s $295-million liability cap for such damages. Amtrak Train 188 crashed May 12, 2015, as it entered a notoriously sharp curve with a 50-mph speed limit going 106 mph, causing several of its cars to jump the tracks ... Read More

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

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

Novartis whistleblower settlement calls into question DOJ vow to get tough on cheaters

The recently announced Novartis whistleblower settlement, which resolved a U.S. Department of Justice (DOJ) investigation into allegations of illegal kickbacks, has brought into question how serious the agency is about holding company leaders accountable. The DOJ has been promising to toughen its stance, holding individuals accountable for decisions on their watch that resulted in fraud, waste and abuse, rather than letting companies get away with fines and pleas that deny responsibility. On Tuesday, just ahead of its set trial date, Novartis AG announced it would settle the whistleblower lawsuit for $390 million. The lawsuit was filed by former Novartis sales rep ... Read More

FedEx settles FLSA class action for misclassified California drivers

FedEx Ground Package System Inc. has agreed to settle a Fair Labor Standards Act (FLSA) class action affecting more than 2,000 misclassified FedEx Ground and FedEx Home Delivery pickup and delivery drivers in California. According to Forbes, FedEx will be resolving the claims made, some dating all the way back to 2000, by means of a $228 million fund. The FedEx settlement came to fruition following a 2014 Ninth Circuit ruling that the company was actively misclassifying its drivers as “independent contractors” in order to avoid granting its employees fair compensation and benefits. The FedEx drivers responsible for bringing the ... Read More

AT&T data breach complaint settled for $25 million

A data breach affecting nearly 280,000 AT&T subscribers settled for $25 million after call center contractors in Mexico, Colombia and the Philippines stole and exposed Social Security numbers and other customer personal information. From November 2013 until April 2014, AT&T call center contractors were responsible for the theft of 68,000 customer personal information records. However, according the complaint released by Federal Communications Commission (FCC) investors, the call centers responsible for the AT&T data breach were for helping Spanish-speaking subscribers, not English-speaking. The leaked AT&T subscriber data was used by criminals to submit roughly 300,000 requests to unlock cellphones. Following the ... Read More

Dow Chemical and whistleblower reach settlement in financial fraud case

A whistleblower who sued Dow Chemical Co. alleging she was fired in retaliation for exposing financial fraud that included lavish spending by CEO Andrew Liveris and other executives, has reached a settlement with her former employer. Kimberly Wood, a fraud investigator who worked for Midland, Mich.-based Dow Chemical for 25 years, claimed the company fired her in Oct. 2013 after she questioned expenditures by Mr. Liveris and Executive Vice President Charles Kalil, including $13 million in cost overruns from a hotel project Dow was funding. Ms. Wood also uncovered company expenses for a number trips the Liveris family took to ... Read More