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October 2016 Archives

Norcold Inc. and Consumers Get Final Approval on Settlement

A $36 million consumer class action settlement, brought against Norcold, Inc.("Norcold" or the "Company") was approved by Judge Staton of the U.S. District Court for the Central District of California. Judge Staton approved the settlement despite the fact that a group of consumers, who were former class members, had objected arguing that the class was entitled to higher compensation.

Volkswagen Settles Lawsuit Over Emissions Scandal

In 2008, Volkswagen began installing illegal engine control software in several of its Volkswagen and Audi models. The software recognized when the car was being tested for emissions, and increased the engine's emission controls in order to pass the inspection. However, during normal driving conditions, the software would shut down the vehicle's emission controls, resulting in the cars releasing 40 times as many pollutants, thus violating the Clean Air Act.

Class Requests Certification Due to Vitamin Company's Deceptive Packaging

A group of consumers is asking a Florida federal judge to certify a class of purchasers of NBTY Inc.'s ("NBTY" or "The Company") vitamins due to alleged misleading packaging. The complaint alleges NBTY vitamins labeled, "Made in America," contain ingredients imported from foreign countries, which is a violation of the Florida Deceptive and Unfair Trade Practices Act and the Federal Trade Commission Act.

Former American Senior Communities' Executives Indicted

Two former executives of the nursing home chain, American Senior Communities ("ASC" or the "Company"), James Burkhart ("Burkhart") and Daniel Benson ("Benson"), are facing charges for defrauding Medicare, Medicaid, and their own company. The two former executives were having vendors overcharge the company for services, some of which the government paid for, and had vendors pay the excess funds to them directly, equating to an estimated $16 million in overcharges. Both men face charges for conspiracy to commit mail, wire and health care fraud, mail or wire fraud, money laundering, and conspiracy to violate the Anti-Kickback Statute.

Class Certification Denied to Investors of UBS in Puerto Rico

A group of investors were denied class certification after claiming that UBS AGs Puerto Rican affiliate ("UBS Puerto Rico" or the "Company") downplayed the risks involved in investing and operated in a manner that twisted the market to allow the Company more control over its closed-end mutual funds. U.S. District Judge Carmen Consuelo Cerezo concurred with U.S. Magistrate Judge Bruce J. McGiverin, who recommended the denial of class certification saying that each individual investor needed to show that they relied on the alleged misstatements.

Wells Fargo FLSA Violations

Wells Fargo & Company ("Wells Fargo" or the "Bank") has come under federal investigation for violating the Fair Labor Standards Act ("FLSA") by failing to pay overtime. Wells Fargo's former employees have spoken out about being forced to create fake bank accounts in order to meet impossible sales goals, and have claimed they were forced to work unpaid overtime to meet those goals. These employees claim they would stay extra hours at the office; if these hours were recorded, managers would go into the Bank's time tracking software and reduce them. If employees tried to push back against these practices, they were threatened with termination, and, in several instances, employees who pushed back were fired.