Two whistleblowers, Lynntoya Washington and Michael Mahoney, filed a lawsuit against Education Management Corp. on basis of fraud, and the Justice Department along with four states – California, Florida, Illinois and Indiana – have joined in on the multi-billion dollar case. The for-profit
For-Profit College Company Faces Whistleblower Suit for Fraud
Katrina Hospital to Pay $25 Million for Class Action Settlement
The wait was long, but people who suffered from unsafe hospital conditions during Hurricane Katrina will finally receive compensation. A Louisiana judge gave a preliminary approval for a settlement fee of $25 million for plaintiffs who sued a New Orleans
Toys “R” Us Violates FTC Agreement and Pays $1.3M Fine
Toys “R” Us will be paying a $1.3 million penalty to the Federal Trade Commission on allegations that the company violated a 1998 order that stopped it from keeping toy prices high and limiting choice for consumers in violation of
Minimum Wage Class Action Case Against Pizza Hut Franchisee
A U.S. District Judge has certified a class of pizza delivery drivers under the Fair Labor Standards Act. Drivers employed at 1,135 Pizza Hut stores in 28 states employed within 3 years of March 28, 2011 are eligible plaintiffs, which brings
Sirius XM Radio Alleged Antitrust Violations
Sirius XM Radio faces a class action claim that it violates antitrust laws. Before Sirius merged with its only competitor XM, it stated that the merger wouldn’t increase the price of satellite radio subscriptions. According to a complaint filed by
Women File Class Action Against Bayer for Gender Discrimination
It looks like Wal Mart isn’t the only company under fire for engaging in discrimination against its female employees. Recently, 6 women filed a class action against Bayer for gender discrimination. According to the women filing the class action suit,
Clearwire Faces Internet Throttling Lawsuit
Fifteen customers have sued Clearwire for allegedly throttling their Internet connection speeds. Clearwire’s website previously advertised its unlimited data usage: Usage is unlimited—believe it. You can upload, download, and surf as much as you want for one low price with
Former Colonial Bank Exec Admits Role in Fraud Scheme
Catherine Kissick, former senior vice president at Colonial Bank, pleaded guilty to a conspiracy that defrauded about $970 million from investors and the government. She faces up to 30 years in prison for her role in the fraudulent scheme. Kissick
Hospitals Agree to Settle Lawsuit Over Patient Deaths Following Katrina
Tenet Healthcare has agreed to settle a class action lawsuit over patient deaths at a subsidiary New Orleans Hospital – Memorial Medical Center – occurring during Hurricane Katrina. The terms of the settlement are presently confidential. The suit was brought

