Yearly Archives: 2012
Blackstone Medical to Pay $30 Million to Settle Whistleblower Case
Blackstone Medical, Inc., a subsidiary of Curacao-based Orthofix International NV, has agreed to pay $30 million to settle allegations that it violated the False Claims Act. Blackstone, acquired by Orthofix in 2006, specializes in the design, development and marketing of spinal implant products. Former Blackstone employee Susan Hutcheson filed a whistleblower complaint under the… Read More »
FINRA Opens Arbitration and Mediation Forums to Customers of Non-Member Investment Advisers
The Financial Industry Regulatory Authority (“FINRA”) has announced that its arbitration and mediation services are now available to customers of non-FINRA member investment advisers (“IAs”). Previously, only disputes with FINRA members were permitted to be arbitrated or mediated before FINRA. Because FINRA is not a self-regulatory organization for IAs, it cannot compel IAs to… Read More »
Government Joins Whistleblower Suit Against Security Contractor
The United States announced that it has taken over a qui tam lawsuit against Triple Canopy, Inc. (“Triple”) based in Reston, Virginia. According to the Justice Department, the claims are related to a $10 million dollar contract awarded to Triple in 2009 for the provision of security services at Al Asad Airbase in Iraq…. Read More »
Pharmaceutical Company Settles Whistleblower Suit for $95 Million
Boehringer Ingelheim Pharmaceuticals, Inc. (“Boehringer”) based in Connecticut has agreed to pay $95 million to settle allegations that it violated the False Claims Act. Specifically, it was alleged that Boehringer unlawfully promoted the drugs Aggrenox, Atrovent, Combivent and Micardis for off-label uses and promoted the use of Combivent and Atrovent at doses that exceeded… Read More »
David Lerner & Associates Hit With More Than $14 Million in Sanctions
The Financial Industry Regulatory Authority (“FINRA”) has ordered New York-based David Lerner & Associates (“DLA”) to pay $12 million in restitution to customers who invested in Apple REIT 10, a non-traded real estate investment trust that invests in extended stay hotels. According to InvestmentNews, it is the largest single restitution order involving REITs. DLA… Read More »
U.S. Intervenes in Qui Tam Action Against Houston-Based Stevedoring Company
The Justice Department announced that it has intervened in a qui tam action brought against stevedoring company Jacintoport International LLC based in Houston, Texas. A stevedore is someone who loads and unloads freight from ships. According to the complaint, in 2007, the U.S. Agency for International Development (“USAID”) and Jacintoport entered into a contract… Read More »
Merrill Lynch Ordered to Pay Investors $1.3 Million
A three-member Financial Industry Regulatory Authority arbitration panel has awarded damages to a Florida couple in connection with losses incurred in Fannie Mae preferred stock. In their May 2011 Statement of Claim, Michelle and Robert Billings alleged that Merrill Lynch, Pierce, Fenner & Smith, Inc. breached its fiduciary duties and acted negligently in connection… Read More »
Florida Arbitrators Award Treble Damages for Exploitation of the Elderly
A three-member panel of Financial Industry Regulatory Authority (“FINRA”) arbitrators has awarded treble damages against Raymond James Financial Services, Inc. based in St. Petersburg, Florida and two of its brokers. According to the Award, Myrna Wechsler, individually and as the Personal Representative of Natalie Varonok, alleged that Raymond James and its brokers Jodi Isdith… Read More »
RxAmerica Agrees to Pay $5.25 Million to Settle False Claims Act Allegations
According to the Justice Department, RxAmerica LLC, a wholly owned subsidiary of CVS Caremark Corporation, has agreed to pay the federal government $5.25 million to resolve allegations that it violated the False Claims Act. RxAmerica provides prescription drug benefits to Medicare beneficiaries in what is commonly referred to as a Part D plan. Medicare… Read More »
Texas Arbitrators Award Customers $3.9 Million
A Houston Financial Industry Regulatory Authority (“FINRA”) arbitration panel awarded Brian O’Grady, M.D. and his family partnership nearly $4 million against River Oaks Capital Management, Inc., David Charles Miller and Brett Stephen Schulick (collectively “Respondents.”) According to the Award, Dr. Grady alleged that the Respondents violated the Texas Securities Act, made material misrepresentations and… Read More »