News from January 2017
DirecTV, lawyer accused of unfair trade practices
SANTA ANA, Calif. -- DirecTV once more faces a RICO lawsuit alleging it has conducted unfair trade practices and has colluded with a law firm and an unnamed entity in extorting small businesses, especially those that are minority-owned, by threatening legal action over alleged erroneous billing.
More litigants come forward in ongoing automotive parts antitrust case
DETROIT (Legal Newsline) – Bridgestone is one of several defendants being sued for alleged antitrust violations in what the company calls one of the largest litigations in the country.
GOP lawmaker introduces federal legislation aimed at delaying DOL’s fiduciary rule
The legislation, introduced by U.S. Rep. Joe Wilson of South Carolina Friday, would provide for a two-year delay of the U.S. Department of Labor’s fiduciary rule’s effective date. The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the “best interest” of the savers and disclose conflicts of interest.
Health care fraud efforts ramped up under Obama
WASHINGTON (Legal Newsline) – A federal program that was implemented in 1997 and designed to target health care fraud took off under President Obama.
Federal jury awards $250,000 to former Costco employee
CHICAGO (Legal Newsline) — The Equal Employment Opportunity Commission (EEOC) announced Dec. 22 that a federal jury has awarded $250,000 in compensatory damages to a former employee of Costco Wholesale Inc. The employee allegedly had been harassed and stalked by a customer.
Law firms butt heads over share of fees in Vioxx class action settlement
Kahn Swick & Foti LLC, considered one of the nation’s premier boutique securities litigation law firms, filed its lawsuit against Milberg LLP in November. The Louisiana firm contends Milberg owes it millions in fees from work it did on litigation concerning Merck’s painkiller Vioxx.
Stockholder alleges Paypal, officers violated law
SAN FRANCISCO (Legal Newsline) — A stockholder is suing a California corporation and its officers, alleging violation of federal law.
U.S. announces deal with Union Savings Bank, Guardian Savings Bank over redlining allegations
COLUMBUS, Ohio (Legal Newsline) — The U.S. Department of Justice announced Dec. 28 that Union Savings Bank and Guardian Savings Bank had settled allegations of engaging in “redlining,” a practice of discriminating against predominantly African-American neighborhoods in and around Cincinnati.
Abbot Laboratories, St. Jude to divest certain businesses before completing proposed merger
WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced Dec. 27 that Abbot Laboratories will divest two medical device businesses after allegations its proposed $25 billion acquisition of St. Jude Medical Inc. will likely be anti-competitive.
U.S. agencies settle for $40 million with 100 parties in Petersen/Puritan Superfund site case
BOSTON (Legal Newsline) — The U.S. Department of Justice, U.S. Environmental Protection Agency (EPA) and the Rhode Island Department of Environmental Protection (RIDEM) announced Dec. 23 they had reached a $40 million settlement with defendants to ensure cleanup of “Operable Unit Two” of the Peterson/Puritan Inc. Superfund site in Cumberland and Lincoln, Rhode Island.
General Cable pays $20 million in settlement, settles allegations of FCPA violations
LEXINGTON, Ky. (Legal Newsline) — The U.S. Department of Justice announced Dec. 29 that General Cable Corporation will pay $20 million after allegations it made improper payments to government officials in Angola, Bangladesh, China, Indonesia and Thailand to gain business. Purported conduct of this nature violates the Foreign Corrupt Practices Act (FCPA).
Boehringer Ingelheim OKs FTC consent order, will divest certain products before Sanofi deal
WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced Dec. 28 that Boehringer Ingelheim has agreed to divest five types of animal health products in the United States before finalizing its proposed asset swap with Sanofi of Paris. The FTC had alleged the swap likely would be anti-competitive.
U.S. reaches final resolutions with banks in Swiss Bank Program
WASHINGTON (Legal Newsline) — The U.S. Department of Justice announced Dec. 29 that it had reached final resolutions with banks that have met the requirements of the Swiss Bank Program.
U.S. targets Barclays for alleged scam that helped ignite 2008 financial crisis
BROOKLYN, N.Y. (Legal Newsline) — The U.S. Department of Justice announced Dec. 22 it has filed a civil complaint against Barclays Bank PLC and many of its affiliates. The department alleges Barclays engaged in a fraudulent scheme to sell residential mortgage-backed securities (RMBS).
Call business to pay $10 million in consumer redress for alleged scam
MIAMI (Legal Newsline) — The Federal Trade Commission (FTC) announced Dec. 22 that Inbound Call Experts, doing business as Advanced Tech Support, along with other defendants, will pay $10 million for alleged customer deception.
Wash. AG targets local asbestos abatement business
WENATCHEE, Wash. (Legal Newsline) — Washington Attorney General Bob Ferguson announced Dec. 29 that his office has filed charges against Timothy Powell and his business A1 Asbestos LLC, for allegations of providing false asbestos waste shipment records to an Okanogan County landfill.
USFS settles with DOJ, will pay $48 million to resolve False Claims Act violation allegations
WASHINGTON (Legal Newsline) — The U.S. Department of Justice announced Dec. 28 that United Shore Financial Services LLC (USFS) agreed to a $48 million settlement after allegations it violated the False Claims Act.
J.G. Wentworth Company sued over alleged misrepresentations related to stock purchase deal
The plaintiff, the owner of a privately-held residential mortgage company, argues JGW was in possession of “material non-public information” and made “misrepresentations and omissions of material fact” regarding JGW’s business in connection with a March 2015 stock purchase agreement.
Consumer attorney: No similar cases to class action over Glade car fresheners
LOS ANGELES (Legal Newsline) – A man in Pennsylvania filed a class action lawsuit against automobile air freshener maker Glade, alleging its products leak and cause damage to a vehicle's interior.
Consumer board alleges Virginia pawnbrokers deceived consumers about loans
WASHINGTON (Legal Newsline) — The Consumer Financial Protection Bureau (CFPB) announced lawsuits Dec. 19 against four Virginia pawnbrokers that allegedly deceived consumers about the cost of loans.