Daily Lawsuit News

Fen-Phen Lawsuit Settlement Diverted to Lawyers

Deadly diet medication Fen-phen lawsuits have been ongoing for over 7 years was initially thought to have settled for 60 million USD. However, recent information shows that lawyers for the plantiffs in this legal action may have pocketed in excess of 150 million dollars.

A federal action has been filed against Melbourne Mills Jr., Shirley Allen Cunningham Jr. and William Gallion and the lawyers for those affected by Fen-Phen may be facing 20 years of federal prison time for fraud.

The original $50 million dollar settlement called for the 440 plantiffs to receive the following:

…about $500 in reimbursement for drug costs; a free echocardiogram; and either $6,000 in cash or $10,000 worth of medical follow-up…

However, according to court documents, one plantiff received over $600,000 in a cash settlement for opting out of the class-action case. The testifying of one of the under-attorneys in the case suggested that all plantiffs received considerably more than the original amount, but still far short of the $200 million that was given by the court-ordered class-action settlement.

This is the type of case that, unfortunately, leads to tort reform that hurts people involved in drug lawsuits. However, it will play out in the court system and the eventual findings and sentencing should set the record straight.

http://www.kentucky.com/779/story/407547.html

Source: Lexington Herald

Posted in Class Action Lawsuits, Fraud, Prescription Drug Lawsuits | No Comments »

Immigration Marriage Fraud Nabs 80 In FBI Sting

Imagine this: A beautiful wedding with cake, flowers, photos and guests provided by a company that sets everything up for you. Now, imagine it’s all part of an elaborate immigration fraud ring. This is the case in an FBI sting operation that nailed over 80 people in Florida.

Four companies specializing in international matchmaking and marriages were followed closely by the FBI and eventually busted. The companies included All Kind Services, A-3 Services, American Solutions & Services and Power of Attorney.

The company would receive $10,000 USD and offer US citizens $2,500 to serve as either a bride or groom. The company would then coach immigrants and citizens on how to pass the immigration questions, all leading to eventual green cards for residency based on a total fraud.

What’s laughable is that there was even a fake wedding cake made of cardboard and silicone to help perpetuate the fraud of marriage. More arrests are expected in this case, and lawsuits from the American citizens involved in this scam could start cropping up any day now.

“What we’ve seen in the past generally is that a person will meet someone, that person might be desperate for some money, willingly engage in a sham marriage and then they go their own ways,” O’Neill said. “Here, you can see this was much more sophisticated. They incorporated businesses, they obviously sought out people, people came in.”

http://edition.cnn.com/2008/CRIME/05/09/marriage.fraud.ap/

Source: CNN.com

Posted in Fraud, Immigration Fraud | No Comments »

Herley Industries Settles Civil Lawsuit With 9.5MM Payout

After months of legal wrangling, the defense contracting company Herley pled guilty to two counts of financial impropriety and agreed to pay the Federal Government 9.5 million USD to settle a civil lawsuit.

Once the company agreed to pay 6MM in penalties and 3.5MM in fine, the government not only dropped over 30 other counts against the company but also withdrew its lawsuit against them.

Herley was accused of making false and fraudulent statements that misled government industries into overpaying for their defense contractor services. News of the settlement drew sharp criticism from those in the industry, but the stock market applauded and sent Herley stock soaring up 20% on Monday.

http://www.centralpennbusiness.com/article.asp?aID=66005

Source: Central Penn Business Journal

Posted in Civil Lawsuits, Financial Fraud | No Comments »

Choice Hotels Denies Liability in Forced Labor Lawsuit

South Dakota Comfort Inn owners Robert and Angelina Farrell were convicted of 22 mixed counts of forced labor and peonage, or forced working in an unfair labor market. Now, it appears that Choice Hotels, the owners of Comfort Inn’s franchise, may be also at fault for not having more stringent guidelines and managing their hotel owners more closely.

Four Filipino workers have filed a civil lawsuit against Choice Hotels and the Farrells personally claiming unspecified damages for their suffering at the hands of the Comfort Inn owners. Choice Hotels denies any wrongdoing or liability involved in this case. As good franchisees, however, the Farrells have requested that the civil lawsuit against the parent company be dropped and only they be named as defendants.

In addition to these legal labor issues, the Farrells also were convicted of visa fraud and false statements. Settlement may be imminent, but the fact that a labor lawsuit of this magnitude occurs in this day and age is shameful, at best.

http://wkbt.com/Global/story.asp?S=8269089

Source: WKBT, LaCrosse

Posted in Civil Lawsuits, Immigration Fraud | 3 Comments »