News from January 2017
Pre-settlement finance company files lawsuit against Florida law firm, others for alleged fraud
Funding Holding Inc., doing business as Law Cash, filed its lawsuit in the U.S. District Court for the Eastern District of New York Jan. 18. Attorney Gabriel Jose Carrera, the Law Office of Gabriel Jose Carrera in Fort Lauderdale, Fla., and more than 20 individuals -- all residents of Florida -- were listed as defendants.
Attorney: U.S. SC review of arbitration agreements to impact businesses
The Supreme Court must consider whether the National Labor Relations Act bars enforcement under the Federal Arbitration Act, of class action waiver provisions in an arbitration clause in an employment contract.
Former Calif. federal judge now serves on litigation funding company’s investment committee
Vaughn Walker, the retired chief judge of the U.S. District Court for the Northern District of California, was appointed to IMF Bentham’s U.S. investment committee in October. The committee considers and approves cases for funding.
Geico accuses chiropractors of fraud
BROOKLYN, N.Y. (Legal Newsline) — Geico is suing a New York chiropractic business, alleging fraud.
Shareholder alleges BATS Global Market, board members violated law
TOPEKA, Kan. (Legal Newsline) — A shareholder is suing a Kansas company and its board members, alleging violation of federal law.
Animal rights group alleges U.S. agencies didn't respond to livestock petition
WASHINGTON (Legal Newsline) — An animal rights group is suing U.S. agencies, alleging violation of federal law.
Volkswagen agrees to $4.3 billion in penalties
WASHINGTON (Legal Newsline) — The Department of Justice announced Jan. 11 that Volkswagen has agreed to $4.3 billion in penalties after allegations the company sold 590,000 diesel vehicles in the U.S. by using defeat devices to circumvent emissions tests.
McKesson distribution practices suspended in multiple states after alleged violations of CSA
WASHINGTON (Legal Newsline) — The Department of Justice announced Jan. 17 that McKesson Corporation (McKesson), a pharmaceutical drug distributor in the United States, will pay $150 million in civil penalties after allegedly violating the Controlled Substances Act (CSA).
Massachusetts Medicaid Fraud Division recovered more than $80 million in 2016
BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey announced Jan. 11 that during 2016 her office recovered more than $80 million for the state’s Medicaid program.
MB2 Dental Solutions in Texas to pay $8.45 million after allegedly violating federal, state laws
AUSTIN, Texas (Legal Newsline) — Texas Attorney General Ken Paxton announced Jan. 12 that MB2 Dental Solutions (MB2) and 21 affiliated pediatric dental practices have agreed to pay $8.45 million after allegedly violating the federal False Claims Act (FCA) and the Texas Medicaid Fraud Prevention Act (TMFPA).
Ala. court backs state AG in case against MOWA band of Choctaw Native Americans
MONTGOMERY, Ala. (Legal Newsline) — Alabama Attorney General Luther Strange announced Jan. 13 that the Mobile County Circuit Court has ruled in favor of the state in a case against the MOWA band of Choctaw Native Americans (Choctaw Entertainment Center) in Mount Vernon.
Teva will pay $519 million in DOJ settlement over FCPA allegations
Teva Pharmaceuticals has agreed to pay the largest-ever Foreign Corrupt Practices Act related settlement for a pharmaceutical company in U.S. Department of Justice history.
House Republicans target 'slush funds' created by DOJ for 'liberal friends'
The House Judiciary Chairman submitted the Stop Settlements Slush Funds Act of 2017, or H.R. 522, last week. An identical bill passed the House in the last Congress by a vote of 241-174, but failed to move.
Cigna agrees to comply with New York mental health coverage laws
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Jan. 23 that Cigna has agreed to comply with New York mental health coverage laws.
Florida attempts to enforce settlement requirements against tobacco companies
TALLAHASSEE, Fla. (Legal Newsline) — Florida Attorney General Pam Bondi announced an enforcement motion Jan. 18 against TG Brands LLC, formerly known as Lignum-2 LLC (ITG), and R.J. Reynolds Tobacco Company (RJR) to enforce the explicit terms of the tobacco settlement agreement dated Aug. 25, 1997.
Washington business to pay $5.275 million after alleged employee payment issues
SPOKANE, Wash. (Legal Newsline) — The Department of Justice announced Jan. 23 that Washington River Protection Solutions LLC (WRPS) will pay $5.275 million after allegations of submitting false claims to the Department of Energy (DOE) about overtime and premium pay on a contract assignment.
Costco to pay $11.75 million to resolve allegations of violating Controlled Substance Act
WASHINGTON (Legal Newsline) — The Department of Justice announced Jan. 19 that Costco Wholesale will pay $11.75 million after allegations its pharmacies violated the Controlled Substance Act.
U.S. settles with Meadowvale Dairy after allegations of Clean Water Act violations
ROCK VALLEY, Iowa (Legal Newsline) — The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced Jan. 19 that Meadowvale Dairy LLC will pay $160,000 and make changes to its business practices after allegations of violating the Clean Water Act at its animal feeding operations in Rock Valley, Iowa.
New York supports EPA's Cross-State Air Pollution Update Rule
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced Jan. 19 that his office has filed a motion in District of Columbia.District Court seeking to intervene in support of the Environmental Protection Agency’s (EPA) Cross-State Air Pollution Update Rule.
Questcor Pharmaceuticals settles with FTC, four states after monopoly allegations
NEW YORK (Legal Newsline) — New York Attorney General Eric T. Schneiderman announced a joint settlement Jan. 18 with four other attorneys general and the Federal Trade Commission with Mallinckrodt PLC and its U.S. subsidiary, formerly known as Questcor Pharmaceuticals (Questcor), a drug manufacturer.