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Showing posts with label settlement. Show all posts
Showing posts with label settlement. Show all posts
Wednesday, January 7, 2015
Monday, September 15, 2014
CVS Does It Again!
Alabama Supreme Court on Friday allowed a class action lawsuit seeking more than $3 billion to go forward against CVS Health Corp and several insurance companies, agreeing with the ruling by a lower court which said the plaintiffs could be certified as a class.
The case dates back to a 1999 class action settlement for $56 million over alleged accounting fraud at MedPartners, a physician and pharmacy benefits management corporation.
MedPartners became Caremark and merged in 2007 with CVS, now known as CVS Health.
In 2003, Alabama attorneys filed a lawsuit on behalf of a stockholder John Lauriello, alleging fraudulent insurance information was given in court by MedPartners and its insurers.
The plaintiffs allege that MedPartners and its insurers hid the fact that unlimited insurance coverage was available at the time of the initial class action in 1998, enabling them to settle for $56 million, instead of $3 billion in stockholder losses, according to court documents.
Monday, September 8, 2014
Stephani LeFlore Takes On CVS Pharmacy
CVS Pharmacy's Medicaid Fraud
CVS, the giant retail pharmacy chain, has agreed to pay $17.5 Million to settle a whistleblower lawsuit accusing it of Medicaid fraud (“welfare fraud”).
THE FRAUD
According to her False Claims Acts lawsuit, CVS pharmacist Stephani LeFlore of Minnesota brought evidence to the government that CVS used a billing system for years that was designed to overbill Medicaid on prescription charges. Ms. LeFlore is represented by Minnesota attorneys Neil Thompson, Brian Wojtalewicz, Robert Christensen, and James VanderLinden, with local counsel Aaron Halstead of Madison, Wisconsin, where the case was filed in federal court.
It was done in relation to dual-eligible customers – those legitimately on Medicaid who also maintained their private health insurance coverage. The insurance coverages required CVS to charge the insurance company a smaller amount for prescriptions, and limited co-pay from the customer. When a person is allowed Medicaid coverage, the government always obtains an assignment of the person’s rights under their private health insurance coverage. The government essentially takes over the citizen’s rights under the coverage. This includes the common right to pay a smaller co-pay amount on prescriptions.
Ms. LeFlore claimed in her federal and state lawsuits that CVS should only have billed the Medicaid program the same limited co-pay on prescriptions that it would have normally billed the customer under the insurance plan. She alleged that CVS designed a billing software program for its pharmacies that consistently overcharged Medicaid on these co-pays. She claimed that these overcharges occurred on hundreds of thousands of prescription sales for well over five years.
The $17.5 Million settlement covers over-billings by CVS in the states of Minnesota, California, Massachusetts, Michigan, Florida, Indiana, Alabama, Nevada, New Hampshire and Rhode Island.
Ms. LeFlore first complained internally, but she was told by a supervisor that “corporate took care of the billing” and that she need not be concerned. She then retained her attorneys and commenced the False Claims Acts (qui tam) lawsuit in September, 2008. The lawsuit stayed under seal (non-public), according to the False Claims Acts and court orders, until the announcement of this settlement.
Ms. LeFlore and her attorneys will receive $2,595,460.00 as the reward under the federal and state False Claims Acts. They are also entitled to receive attorney fees from CVS.
Monday, September 1, 2014
So Cal Gas Settlement! Largest Personal Injury Jury Verdict In History!
A jury last month returned a verdict of $19.8 million against Southern California Gas Co. (SoCal Gas). The verdict was in a personal injury action brought by a man who suffered severe burns and brain injuries after his rental home exploded as a result of SoCal Gas’ negligence. The jury found that SoCal Gas was negligent and that its negligence was a substantial factor in causing harm to the 24 year old Plaintiff. A SoCal Gas employee activated an illegally uncapped gas line running into the Plaintiff’s home. His room filled up with natural gas and exploded into flames when he tried to light a cigarette.
The Plaintiff continues to suffer from painful and life-altering injuries brought on by the “extremely traumatic event.” The jury verdict was said to be the largest personal injury jury verdict in history against SoCal Gas. It included about $17 million for past and future pain and suffering, $2 million for past and future medical expenses and $657,100 for past and future loss of earnings.
In 2011, a former SoCal Gas employee named Simon Youde opened a gas valve that activated a gas line running to the back house where Diao was sleeping. Youde left the property without ensuring it was leak-free, ultimately leading to the explosion, according to the Plaintiff’s counsel.
Diao received second- and third-degree burns on more than 20 percent of his body and was taken to a burn unit where he remained for about two weeks and had numerous surgeries. Diao was also diagnosed with a traumatic brain injury that left him with permanent cognitive deficits, according to court documents. SoCal Gas admitted fault in the incident but sought to impose some liability on the property owner. The company challenged the severity of the Plaintiff’s injuries and told the jury Diao should be awarded $1.4 million, but the jury disagreed.
Tuesday, August 26, 2014
Walgreens Agrees to $80 Million Settlement Over Distribution of Painkillers
Walgreens has reached a settlement with the federal government that will cost the company about $80 million. The DEA charged that Walgreens was committing an “unprecedented” number of record-keeping and dispensing violations of the Controlled Substances Act. Walgreens was said to have negligently allowed controlled substances such as the narcotic oxycodone and other prescription painkillers to be distributed to abusers and sold illegally on the black market.
The Centers for Disease Control and Prevention (CDC) reported that the U.S. death rate from drug overdoses has more than tripled since 1990. It said prescription painkillers, also known as opioid or narcotic pain relievers, were involved in more than 15,500 overdose deaths in the United States in 2009. Walgreens had previously set aside $80 million for a settlement, including $25 million in its fiscal third quarter, which ended May 31st.
Sears Pays $5 Million To Settle Employees Overtime Class Action Lawsuit
Sears Holdings Management Corp. has agreed to pay $5 million to end a proposed class action accusing the retail giant of misclassifying about 700 employees at Sears and Kmart retail stores as “overtime exempt” in violation of the Fair Labor Standards Act (FLSA).
So far 657 class members have opted into the collective action, according to the settlement. The FLSA class would include all Plaintiffs who opted into the suit as well as class members from a second related class action as of July 14.
Does your employees expect you to work overtime without compensation, yet continues to classify you as a per hr paid employee? If this is true please consider contacting Jim Vander Linden, www.vanderlindenlaw.com, call him at 612) 339-6841 or email him at jim@vanderlindenlaw.com
Sunday, August 17, 2014
Citi Group Case Fair or more Fraud??
You may have heard about the Citi Group mortgage fraud and their punishment. I want to fill you in on the "rest of the story", as Paul Harvey would have said.
Even though this despicable cover up took years to crack, was it a success? Citi Group got a slap on the hand for their actions. They were ordered to pay a settlement in the amount of $7 billion dollars, which is a large amount of money, but to this group it's a drop in the bucket. This amount, $4.5 billion in cash and an additional $2.5 billion in "consumer relief," will help consumers struggling with mortgages and other problems from the 2007-2009 financial crisis.
Also, while the judge held the company responsible, there was absolutely no individual consequences for the individuals responsible for these actions. Were they simply following orders to keep their employment or were they purposely frauding individuals to make their sales quota?
What is your opinion on this?
What other information or personal stories can you share that pertain to this event?
Watch this video for more information
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