The California Insurance Commission has subpoenaed MetLife, Inc. over allegations that the US’s largest life insurer may have cheated policyholders’ survivors.
MetLife is alleged to have failed to pay life insurance policy benefits to named beneficiaries or the state, even after learning that an insured has passed away. Continue reading MetLife Subpoenaed Over Allegations of Unpaid Benefits
US Airways Group has hit third-party ticket seller Sabre with an antitrust lawsuit, claiming that Sabre Holdings Corp shuts out its competition and deliberately drives up its prices.
The lawsuit alleges that Sabre, a third-party distributor of air fare information to travel agents, suppressed the ability for agents to book tickets directly through airlines. Continue reading US Airways Hits Sabre with Antitrust Lawsuit
More than seven months after the bill was signed into law with some fanfare, most domestic workers, such as nannies, and their employers seem unaware of the new Domestic Worker’s Bill of Rights in New York.
Advocacy group Domestic Workers United and the US Labor Department have been working to spread the information to domestic workers. The law is the only one in the nation to offer specific protections for domestic workers, including nannies, housekeepers and caregivers for the elderly. Continue reading Labor Dept, Advocates Spread Word on New York Domestic Worker Bill
New York State has joined the US Justice Department in filing an antitrust lawsuit challenging the planned acquisition by Stericycle, a medical waste services company of Healthcare Waste Solutions Inc.
The suit charges that, unless remedied, Stericycle, the dominant firm nationally for collecting and treating medical waste generated by hospitals and other medical facilities, will control about 90 percent of the medical waste business in the New York City metropolitan area. Continue reading New York, Justice Dept File Antitrust Suit Against Stericycle
Workers at a Kansas slaughterhouse are seeking unpaid wages and overtime from Creekstone Farms Premium Beef in a federal lawsuit that seeks class-action status.
Filed on behalf of 700 employees at Creekstone Farms’ Arkansas City plant, the suit claims the company hasn’t been paying employees for all of the time they spend working. Workers are seeking an unspecified amount for uncompensated services and time, as well as their legal costs. Continue reading Creekstone Farms Employees File Class Action Lawsuit Against Company
The US Justice Department has announced that it is stepping up efforts against hospitals and insurance companies engaging in antitrust practices.
Recently, the department sued Wichita Falls, Kansas-based United Regional Health System over allegations that they were giving health insurers strong incentives not to do business with rival hospitals, therefore creating a monopoly and becoming one of the most expensive hospitals in Kansas. Continue reading Justice Department Focuses on Antitrust Behavior in Healthcare
The former vice president and director of secondary marketing at Taylor, Bean & Whitaker has plead guilty to taking part in a scheme that ultimately led to nearly $2 billion in losses and the failure of Alabama-based Colonial Bank.
Raymond Bowman plead guilty to one count of conspiracy to commit bank, securities and wire fraud and one count of making false statements; for each count, he faces up to five years in prison, restitution and fines maxing out at $250,000. Continue reading Vice President of Mortgage Lender Pleads Guilty to Fraud
Winthrop, Massachusetts resident Joseph Gennaco, 67, has been charged in federal court with on five counts of wire fraud and 13 counts of mail fraud involving sales of purported life settlements. Also taking part in the investigation were the US Postal Inspection Service, the Federal Bureau of Investigation, the Suffolk County District Attorney’s Office and the Massachusetts Securities Division.
The indictment charges Gennaco defrauded roughly 20 investors of monies totaling about $4 million by allegedly misrepresenting that the funds would be invested in life settlements. Gennaco allegedly represented to investors that their funds would be invested in one or more life insurance policies and that the investments would be repaid with a guaranteed profit from the sale of those policies.
Instead, online news source Life and Health Insurance News reports, Gennaco diverted investors’ funds to his own uses, allowed insurance policies to lapse by failing to pay the premiums, and failed to repay investors when he sold the policies, according to the indictment. Continue reading Massachusetts Man Charged with Life Settlement Mail, Wire Fraud
Panera Bread, the Richmond Heights-based company behind the Saint Louis Bread Company restaurants here and countless Panera eateries across the nation, has settled a class action lawsuit alleging it defrauded its investors.
Panera Bread has agreed to pay $5.75 million to settle a class action lawsuit brought by shareholders who alleged the chain of bakery cafes misled investors about the success of its Crispani pizza, a product Panera discontinued in 2008. Continue reading Panera Bread to Pay $5.75 to Settle Securities Fraud Lawsuit
Bank of America Corp., the biggest US bank by assets, was sued by investors in mortgage-backed bonds who are seeking to force the bank to buy back loans underlying their securities.
Bank of America’s Countrywide Financial unit breached representations and warranties about the loans, which it originated, the investors said in the complaint filed today in New York State Supreme Court in Manhattan. Continue reading Bank of America Sued by Investors Over Loans