Tagged Articles

settlements 196 articles

Company fined for claiming its products reverse, prevent gray hair

COORGA Nutraceuticals Corporation and its principal Garfield Coore violated the law by alleging their “Grey Defence” dietary supplements reversed or prevented gray hair, a U.S. district court judge ruled in a lawsuit filed by the Federal Trade Commission (FTC). Under the ruling, the company can no longer make claims that its products can prevent or reverse gray hair unless it provides viable scientific evidence. COORGA and Coore were also fined $391,335 in penalties, which will in part help compensate consumers who claim they were defrauded by the company. The FTC filed the complaint against COORGA and Coore in May 2015. ... Read More

CMS rule to protect nursing home patients put on hold by opposition

The American Health Care Association, a group representing the nursing home industry, has filed a lawsuit to stop the Centers from Medicare & Medicaid Services (CMS) from ordering nursing homes to remove binding arbitration clauses in their new resident contracts, which strip nursing home patients and their families of their right to file lawsuits in the event of elder abuse, neglect or even murder. The CMS rule, set to go into effect Nov. 28, ordered nursing homes to remove the clauses if they want to receive government funds to offset costs for patients. These forced arbitration agreements require patients to ... Read More

Jury selection in next Risperdal side effects trial expected to begin soon

Jury selection for the next Risperdal side effects trial is expected to begin in early December, and despite jury awards or settlements in five of the six cases that have already gone to trial, attorneys for Risperdal manufacturers say a class-wide settlement is not in the works. The terms of the latest settlement, reached with the family of a boy known simply as N.F., were not disclosed. The family of N.F. claimed that the boy began taking Risperdal after being diagnosed at age 7 with Asperger’s syndrome, impulse control disorder and oppositional defiance disorder. He was taken off the medication after ... 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

Omnicare To Pay $28 Million To Settle Abbott Kickback Allegations

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

Plaintiff’s attorney in talc trial says litigation may affect thousands of women

Courtroom View Network (CVN), which is webcasting the entire Johnson and Johnson talc trial that is currently underway, last week said that hundreds of lawyers from all over the country were in attendance watching to see how this high-stakes trial would play out. It reports that the trial might last up to four weeks. This Friday will end week two. Johnson and Johnson, after two big losses earlier this year in the same Missouri state court where the current trial is taking place, has changed its trial team to a new law firm, presumably in hopes of different results. The plaintiff ... Read More

Two Utah Mortgage Lenders Settle FCA Complaints Alleging Mortgage Fraud

Two Utah-based mortgage lenders settled False Claims Act (FCA) lawsuits with the U.S. government this week, agreeing to pay nearly $10 million combined to resolve separate allegations that they cost taxpayers millions of dollars by originating and underwriting federally funded mortgage loans that did not meet regulatory requirements. Primary Residential Mortgage Inc. and SecurityNational Mortgage Company, both based in Salt Lake City, have become the latest companies involved in a string of recent settlements between the U.S. Justice Department and mortgage-lending institutions. Federal authorities have been prosecuting banks that they say contributed to the housing crisis by deliberately originating and ... Read More

Dietary supplement maker agrees to NY AG’s request for advanced genetic testing

NBTY Inc., one of the largest producers of herbal supplements in the U.S., has agreed to conduct an advanced form of genetic testing to on its products to ensure they contain the ingredients listed on its label. NBTY sells nearly 22,000 herbal supplements under various brand names including Solgar and Nature’s Bounty. The products are sold in retails stores such as Walmart, Walgreens, GNC and Target. The company agreed to the new regulations after an investigation by the office of New York Attorney General Eric Schneiderman found that many dietary supplements sold in stores across the state lacked genetic material ... Read More

SEC Awards Whistleblower More Than $4 Million

The U.S. Securities and Exchange Commission (SEC) announced Tuesday that it has awarded a whistleblower more than $4 million for providing insider tips and information that alerted regulators to fraud. The award caps off a successful summer for the SEC whistleblower program, which was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and launched in 2011. In June, the SEC announced a series of fraud-related settlements that resulted in awards of more than $26 million for whistleblowers. In August, the agency awarded more than $22 million to a Monsanto whistleblower, which pushed the SEC whistleblower ... Read More

Illinois Home Health care Company Owner Pays $6.8 Million, Faces Prison Time For Kickback Scheme

The owner of an Illinois-based home health care company admitted in federal court last week that he paid illegal kickbacks to 20 medical directors to acquire referrals of elderly Medicare patients. Between December 2006 and September 2014, Romy Macasaet Jr., owner of Home Bound Healthcare Inc. of Lemont, Ill., paid more than $789,000 in bribes to the medical directors who sent Medicare patients his way in exchange for the money. The illegal kickbacks resulted in Mr. Macasaet receiving Medicare reimbursements worth millions of dollars, according to U.S. Attorney for the Northern District of Illinois Zachary Fardon. Mr. Macasaet used various agreements ... Read More