News from February 2017
HealthDrive dental practice to pay $1.5 million after allegedly overbilling MassHealth for nursing home visits
BOSTON (Legal Newsline) – Massachusetts Attorney General Maura Healey announced Feb. 17 that dental provider Dr. Alec H. Jaret, doing business as HealthDrive Dental Group, and its billing agent, HealthDrive Corp., will pay $1.5 million after allegations of overbilling MassHealth for nursing home visits.
When, how or will Trump change consumer protection bureau's leadership
Richard Cordray, a former Ohio attorney general, remains the head of the Consumer Financial Protection Bureau, considered a thorn in the side of many Republicans. Some experts say they are surprised President Donald Trump hasn’t yet given Cordray the boot.
SEC charges Terminus Energy with allegations of misleading investors about its products
WASHINGTON (Legal Newsline) – The Securities and Exchange Commission (SEC) announced Feb. 14 that it charged Terminus Energy, a California-based penny stock company, and four corporate officers with allegations of misleading investors.
SEC obtains emergency court order freezing brokerage accounts of a Chinese national suspected of insider trading
WASHINGTON (Legal Newsline) – The Securities and Exchange Commission (SEC) announced Feb. 10 that it obtained an emergency court order freezing brokerage accounts amassed by Shaohua (Michael) Yin in the wake of Comcast Corp.’s acquisition of DreamWorks Animation SKG Inc. after allegations of insider trading.
IWLA to settle allegations about business practices
NEW YORK (Legal Newsline) – New York Attorney General Eric T. Schneiderman announced Feb. 22 that The International Women’s Leadership Association (IWLA) agreed to settle allegations that it has misrepresented the methods it used to select recipients for a business networking program.
Morgan Stanley pays $8 million penalty after allegations linked to single inverse ETF investments
WASHINGTON (Legal Newsline) — The Securities and Exchange Commission (SEC) announced Feb. 14 that Morgan Stanley Smith Barney will pay $8 million and admit wrongdoing after allegations related to single inverse ETF investments it recommended to advisory clients.
Fla. SC ruling rejects state Legislature’s ability to limit attorney fees in claims bills
In Florida, state law limits recovery against the State or its agencies or subdivisions to $100,000 per person or $200,000 per incident in damages, with a 25 percent cap on attorneys’ fees. To get more, lawmakers must pass a claims bill, or a relief act.
Georgia high court says no punitive damages under state’s Computer Systems Protection Act
ATLANTA (Legal Newsline) – Georgia’s highest court last month weighed in on whether a plaintiff can be awarded punitive damages as compensation for losses under the Georgia Computer Systems Protection Act.
Institutions should include CFPB's database in risk assessment
WASHINGTON (Legal Newsline) – The Consumer Financial Protection Bureau’s website could be used as a data-mining tool for plaintiffs attorneys, says Douglas Thompson of Bryan Cave.
Two sue children's hospital over phone calls
SAN DIEGO (Legal Newsline) — Two San Diego consumers have filed a class action lawsuit against a San Diego hospital, alleging violation of telephone harassment statutes, such as the Telephone Consumer Protection Act (TCPA).
Seagram's Ginger Ale has no ginger, lawsuit complains
SAN JOSE, Calif. (Legal Newsline) — A California woman has filed a class action lawsuit Coca-Cola, alleging fraud and negligent misrepresentation.
Moose Munch Popcorn the subject of class action lawsuit
NEW YORK (Legal Newsline) — A New York consumer has filed a class action lawsuit against Harry and David, alleging fraud and negligent misrepresentation.
Shareholder alleges Stemline Therapeutics violated federal securities laws
NEW YORK (Legal Newsline) — A shareholder has filed a class action lawsuit against a bio-pharmaceutical company and its executives, alleging violation of federal law.
JFK Courtyard settles price-gouging allegations
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Feb.13 that Granite JFK LLC and Crossroads Hospitality Company, which own and operate, respectively, the Courtyard by Marriott New York JFK Airport hotel, have agreed pay $48,000 to settle allegations of illegal price gouging during the Jonas ice storm in January 2016.
New York attorney general joins opposition to Commercial Vessel Incidental Discharge Act
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Feb. 15 that his office has joined 10 other attorneys general in writing a letter to Sens. Mitch McConnell of Kentucky and Charles Schumer of New York, asking for them to oppose to the Commercial Vessel Incidental Discharge Act.
New York targets David Barton Gyms for allegedly failing to refund customers after closing
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced a lawsuit Feb. 15 against Club Ventures Investments LLC,doing business as David Barton Gyms (DBG), and related entities that own and operate four David Barton Gyms in New York City.
New York settles with multiple app developers that allegedly failed to disclose data collection practices
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Feb. 9 that his office has reached settlements with mobile application developers AB Mobile Apps LLC and Bizness Apps LLC for alleged failures to disclose data collection practices in privacy policies.
U.S. House panel approves asbestos ‘double-dipping,’ litigation reform bills
On Wednesday, the House Judiciary Committee passed the Furthering Asbestos Claim Transparency, or FACT, Act of 2017 by a vote of 19-11. The committee also passed the Fairness in Class Action Litigation Act of 2017 by a vote of 19-12.
Ala. SC declines to apply ‘new, greatly expanded’ theory of liability in hospital negligence cases
The state Supreme Court, in a per curiam opinion released Feb. 10, sided with Helen Keller Hospital in a medical malpractice lawsuit filed against it, affirming the ruling of a trial court.
Proposed Restatement of consumer contract law could give trial bar new weapon
PHILADELPHIA (Legal Newsline) - American Law Institute (ALI) is cooking up new common law rules covering consumer contracts that would give courts an unprecedented range of reasons to invalidate or rewrite contract terms.