Week Adjourned - Part 40

Week Adjourned: 6.18.10

Top Class Actions

Corexit Surely Didn’t Correct It. Up until yesterday, I was thinking that at some point in the distant future the BP oil spill may begin a positive chapter, the toxic gusher will finally be capped and the clean-up will begin to make a meaningful impact—we may even be fortunate enough to see the return of some species that are currently threatened with extinction—including the fishermen.

Then, I saw this: a class action lawsuit filed yesterday, alleging that BP and Nalco Holding Company intentionally sprayed “Corexit 9500” dispersant into the Gulf of Mexico with full knowledge of its dangerous toxicity. The suit alleges that the dispersant was sprayed entirely to lessen BP’s financial exposure and cleanup efforts relating to the oil spill.

Then I thought to myself ‘Wasn’t BP was on the verge of collecting an award for its environmental achievement just days before this disaster occurred? How could any ethically responsible corporate citizen engage in this activity with any kind of knowledge of the dangers?’ Of course the key point here is ethics…or the complete lack of them.

According to a press release about the suit, “When administered the dispersant, Corexit 9500, attaches to the oil causing both the oil and the chemical to sink below the surface of the water eventually settling to the sea floor. Studies have demonstrated this process will permanently alter the biosystem and food chain in the Gulf.” (See the above vid from msnbc where Dr. Seth Forman talks about the potential impact on Corexit on the rest of us.)

But it gets worse, if that’s even possible. “This chemical has been banned in the UK for over a decade,” the press release states. “Corexit is four times as toxic as the oil itself. Oil is toxic at 11 ppm, but Corexit is toxic at only 2.61 ppm. Corexit was banned from use in the United Kingdom because it did not pass the ‘Rocky Shore Test’ which Continue reading “Week Adjourned: 6.18.10”

Week Adjourned: 6.4.10

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Rehabilitating your disability insurance. Sun Life Assurance got hit with a potential class action this week—filed by a disgruntled (and rightly so) client (or is there another, more accurate term that could be used here…) who alleges that the company denied her disability claim on the lack of something called discretionary proof. Sounds dodgy to me.

Discretionary proof, you ask? According to information issued by the law firm handling the suit, discretionary proof clauses basically amount to a ‘get out of paying the insurance claim’ loophole. But don’t take my word for it. This from the statement on the class action:

“Discretionary proof clauses have been the subject of intense scrutiny by state regulators and insurance commissioners. The clauses provide that an insurer will pay a disability claim only if it is “satisfied” with the policyholder’s proof. Many insured persons claim that despite extensive proof of medical disability, including surgical reports, treatment records, and doctors’ affidavits, Sun Life and other insurers are “never satisfied” leaving them without disability coverage.”

Why am I not surprised by this?

Apparently, on June 1, 2007, the State of Michigan Insurance Commissioner outlawed discretionary proof clauses in all disability contracts delivered within the state. The insurance industry challenged the Michigan regulation, and on March 18, 2009, a federal appeals court decision found that the Michigan regulation was valid and lawful.

I don’t know about you—but I’m checking the fine print on my policy…

Top Settlements

No Eclipsing that Halitosis. Now—here’s a big win for all you gum chewers out there. Wrigley has agreed a $6M settlement in a class action suit over Eclipse gum.

Before you get too excited—the amount each class member will receive is about enough to buy another couple of packs of gum. The settlement works out to about $10 per person. But the lawyers Continue reading “Week Adjourned: 6.4.10”

Week Adjourned: 5.29.10

Kiss the week goodbye…Memorial Day Weekend here we come!

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Demented Segmented Marketing. A couple of former employees who blew the whistle on Wyeth in 2005 by filing a lawsuit against the pharmaceutical company refiled an amended complaint this week, alleging that the company illegally promoted its kidney transplant drug Rapamune for use with other organ transplants—the Swiss Army knife of meds!— for which the drug is not indicated. You know—heart, lung, liver, pancreas—essential organs—that kind of thing…

And , yes—there’s more, the complaint claims Wyeth targeted African American patients, who are a high-risk patient group, despite the lack of evidence to support its use in this population. Sadly, this all sounds par for the course by now. Oh—by the way—Wyeth is now owned by Pfizer, and Pfizer, if you recall, settled a whistleblower lawsuit in September 2009—paying $102 million to six whistleblowers who brought a suit over its marketing and promotion of the prescription arthritis medication Bextra, and ordered to pay $2.3 billion in civil and criminal penalties. Pfizer also agreed to plead guilty to a felony charge for promoting Bextra and 12 other drugs for unapproved uses and dosages.

Anyway—back to Rapamune. The two whistleblowers who filed the suit are ex-Wyeth sales reps— their turf was hospitals—so they are in position to know. The list of allegations on the complaint is pretty lengthy and makes for some shocking reading. But it boils down to illegal promotion and kickbacks in exchange for prescriptions written. Thing is, this could affect numerous transplant recipients across the country:

“Despite limited data on high-risk patients, Wyeth targeted transplant centers that catered primarily to African-American patients, typically in urban areas. In 2005, Wyeth’s sales management selected Philadelphia’s Einstein Medical Center as a center on which to focus a Wyeth marketing plan designed to rapidly increase or accelerate Rapamune sales in a 90 day period. Einstein’s transplant patient population was approximately 75 percent African-American in 2005,” the suit states.

Nice to know these folks had the patients’ best interests at heart…no pun intended.

Top Settlements

New Wal-mart Recycling Program: Lawsuits? It’s business as usual for Wal-Mart—one of our profoundly regular, if not ignorant contributors—has settled yet another employment class action this Continue reading “Week Adjourned: 5.29.10”

Week Adjourned: 5.22.10

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Seems there’s no end of trouble in sight for the beleaguered auto industry…

“We’re Leading by Example”? What’s that line about not throwing stones if you live in a glass house? Perhaps Ford ought to rethink using that headline as this week the company got hit with a class action lawsuit stemming from consumer complaints about alleged ‘defective’ rear axles on its Windstar model 1999-2003 minivans.

Apparently, the rear axles in question are unsealed hollow cylinders that basically collect water and ‘corrosive agents’ and, you guessed it, over time can corrode and crack, or even split into pieces. Um. That sounds like a quality product…not.

In fact it sounds quiet dangerous—and it is, because the axles are susceptible to failing while the minivan is being operated. Nice.

The law firm that filed the potential class action suspects that “more than 949,000 Windstars were manufactured with a defective axle.” That’s a lot of minivans—and a lot of families…

Top Settlements

The Week the Women Won…5,600 women that is, who filed a gender discrimination class action against their employer, Novartis Pharmaceuticals. Bloomberg reported it as the largest ever employment discrimination verdict—according to their data.

The payoff? $250 million in punitive damages and roughly $3.36 million in compensatory damages for each of the 12 women who are named plaintiffs and who took the stand in the case. Incidentally—the case was filed in 2004—so that’s six years of living the legal wars and all the rest.

Some of the stuff that came out in the courtroom was quite worrying. Here’s a clip from an official press release on the verdict—you be the judge—” On the first day of the trial in the defense’s opening Continue reading “Week Adjourned: 5.22.10”

Week Adjourned: 5.14.10

An overtrime pay lawsuit has been filed against Gentiva This week it’s all about bad employers and bad drugs…bad, bad, bad!

Top Class Actions

Whole New Meaning to Visitation Rights. A massive, nationwide class action lawsuit was filed this week by employees of one the largest healthcare service providers in the country—Gentiva Health Services, Inc. The employees are claiming the company violated the Fair Labor Standards Act (FLSA).

Apparently, Gentiva—which incidentally employs some 30,000 health care workers—treats visiting nurses and other health care providers as exempt from the overtime requirements of the FLSA and refuses to pay these employees for all hours worked. Sound familiar?

Instead, Gentiva pays nurses and other health care providers on a “per visit” basis for some work, an hourly rate for other work, and fails to pay anything at all for other hours worked. Plaintiffs allege that Gentiva’s rather creative take on employee compensation doesn’t quite meet the requirements of state or federal wage and hour law.

The lawsuit, if approved, seeks to represent all current and former Gentiva employees, including registered nurses, therapists, and other health care providers who are or were not paid for all hours worked.

You know these guys may end up rivalling Wal-Mart….

Top Settlements

Movin’ from Price to Wage Rollbacks? (Again?) Speaking of the devil…(I feel a rant coming on)… Continue reading “Week Adjourned: 5.14.10”

Week Adjourned: 5.7.10

A BIG week—in all the wrong ways… This oil stain's gonna take more than some Shout to get out

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Crude-ites Not On the Menu? Just as the toxic oil begins to roll in along the northern coastlines of the Gulf of Mexico—so, too, do the lawsuits against BP, Haliburton, Transocean, and Cameron International, among others.

At least two class actions were filed this week, one in Alabama, and the other in Florida, over potentially different but related outcomes from what may turn out to be the environmental death of the northern Gulf.

In Alabama, the owner of Tacky Jack’s restaurant filed a class action on behalf of all restaurant owners along the Alabama Gulf Coast for losses resulting from the massive oil spill. The suit alleges negligence and wanton misconduct. Defendants named in the suit are BP, Haliburton, and Cameron International. The restaurant owners are deeply worried that they will have lost their livelihoods as a result of this oil disaster. And unfortunately this baby’s gonna take more than a few Shout wipes to clean up.

According to a press release about the lawsuit, travel in Alabama’s Gulf Coast Region accounted for 35 percent of the state’s tourism revenue, as well as 36 percent of the state’s travel-related employment in 2009. Travel related expenditures in Alabama’s Gulf Coast region in 2009 totaled $3,222,382,869. That’s not insignificant.

It seems that this is restaurant owners as good corporate citizens week—as a second suit was filed by a Florida restaurateur together with a homeowners’ association. They filed a class action Continue reading “Week Adjourned: 5.7.10”

Week Adjourned: 4.30.10

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Is GM cutting corners? Maybe. Certainly Jimmy Hendon believes they are, so he filed a class action lawsuit against the automotive manufacturer, over alleged unfair business practices associated with its extended warranty plans.

Mr. Hendon is claiming that GM improperly calculated his prorated cancellation refund associated with his GM Major Guard Vehicle Service Contract. Hendon purchased the extended warranty in 2006 as additional 12 month/44,000 mile coverage to the GM standard 36 month/36,000 mile factory warranty which came with the new 2006 Chevy Avalanche he had just bought. Hendon canceled the extended warranty in 2009, with 18,483 miles remaining on the contract.

Specifically, the complaint alleges that GM calculated Hendon’s refund by taking the remaining miles divided by the 80,000 total miles under warranty, resulting in a $295 refund. Hendon claims GM should have calculated his refund by dividing his remaining miles by the 44,000 mile extension, resulting in a $580 refund.

The suit claims that GM should be prorating the canceled refund by dividing the remaining miles or days by the number of miles or days that the service contract extended the factory warranty.

While you may think that $200 or $300 may not sound like much for GM—why would they bother?—if you multiply that sum over the potentially thousands of folk in similar situations to Jimmy—well heck, you might just have enough for a bailout payment…

The Gulf of Mexico Tragedy in the Making… Hopefully BP won’t get away with this environmental Continue reading “Week Adjourned: 4.30.10”

Week Adjourned: 4.23.10

Top Class Actions

Testing the limits of virtual reality… Second Life—you may have heard of it—an enormously popular and just plain enormous virtual reality platform that enables you to totally reinvent yourself—many times over if you wish… (Think Avatar). Well, it’s the subject of a potential class action lawsuit filed this week. There’s a laundry list of allegations, including consumer fraud, stemming from real estate transactions that took place within the platform.

The simpleton’s version (because Second Life can seem a bit non-sensical to those of us with our feet on terra firma), is that people—members—of Second Life who used real world money to purchase virtual real estate within the platform, have been duped. How? The allegations are that “Linden Research induced thousands of people to invest as much as $100 million of real money in virtual properties, then reclaimed those virtual properties from the purchasers without compensation.” There’s nothing virtual about that allegation.

The law suit also claims that Linden Labs stated that it would protect members’ rights to their virtual property, and that those properties could be used as a source of revenue for the owners. However, the plaintiffs contend that members who purchased virtual real estate were in fact increasing the value of Linden Research in advance of an initial public offering or sale of Second Life. And, Linden Labs, at no time, made any attempt to compensate an estimated 50,000 participants who purchased virtual real estate based upon the company’s promises.

None of this sounds even vaguely like science fiction—more like art imitating life…there really is no escape…

Top Settlements

Big Asbestos Settlement in Texas. A 67-year old man was awarded roughly $11 million by a jury this week, in settlement of his asbestos mesothelioma lawsuit. FYI—this is reportedly the largest settlement of its Continue reading “Week Adjourned: 4.23.10”

Week Adjourned: 4.16.10

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Hi Ho, Hi Ho, it’s off to court we go….

Census Looking for a Few (Really) Good Men? The feds are in hot water this week, facing a lawsuit—the first of its kind—alleging that the Census Bureau screened out job applicants with arrest records, regardless of whether or not the arrest actually led to a criminal conviction.

This has adversely affected “thousands of African Americans, Latinos, and Native Americans,” the suit claims, as they have been “rejected for jobs by the US Census Bureau during the federal government’s massive hiring campaign for this year’s census because of systematic discrimination.” Personally, I wouldn’t have thought the government capable of that level of organization, but hey, it’s possible. And, if it’s true, it’s no laughing matter.

According to a related press release, “Government records show that more than 70 million people in the US have been arrested, but more than 35 percent of all arrests nationwide never lead to prosecutions or convictions,” a sobering statistic indeed. No wonder the police are so busy, busy generating paperwork.

Unfortunately, as the lawsuit points out, African Americans, Latinos, and Native Americans are far more likely to have arrest records and convictions than whites, and so Census’s hiring policies discriminate against people of color in violation of Title VII of the Civil Rights Act. Ummm.

Top Settlements

The Chinese Drywall Homes…Homes Barely Livable…We Can Rebuild Them…Ok, so it’s not quite like the $6 Million Dollar Man, but… Remember all those stinky drywall stories? Well, a critical settlement Continue reading “Week Adjourned: 4.16.10”

Week Adjourned: 4.2.10

Good thing as you won’t be getting overtime. (Shirt available at CafePress.com)

Top Class Actions

Underwriters Underpaid. JP Morgan Chase got hit with an unpaid overtime class action lawsuit earlier this week. Seems to be a pretty common practice these days.

The allegations? Chase had a “common practice” of misclassifying their loan underwriters as exempt and failed to pay them for all overtime hours worked in violation of federal overtime pay laws. In other words, they saved themselves the overtime payments by reclassifying their employees as exempt.

But it’s not like Chase can’t afford the overtime—especially when you consider that their loan underwriters are pivotal in bringing in the big bucks. Chase is one of the country’s largest commercial banks, and “performs a significant amount of real estate loan origination and underwriting.” In order to do that business, Chase employs roughly 500-1,000 underwriters nationwide, many of whom allege they worked nights and weekends to get the job done.

Top Settlements

$15M Plane Crash Settlement. Several months ago small plane crash killed 37-year old Michael Waugh, a Continue reading “Week Adjourned: 4.2.10”