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Settlement Announced In U.S. Bank Overdraft Fee Class Action
Court Watch |
2012/07/02 11:00
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U.S. Bank has agreed to pay $55 million to settle class action lawsuits that accused the bank of improperly manipulating its customers' debit card transactions in order to generate excess overdraft fee revenues. The lawsuits, part of multidistrict litigation involving more than 30 different banks entitled In re Checking Account Overdraft Litigation, are pending before U.S. District Judge James Lawrence King in Miami.
The lawsuits claim that U.S. Bank's internal computer system re-sequenced the actual order of its customers' debit card and ATM transactions, by posting them in highest-to-lowest dollar amount rather than in the actual order in which they were initiated by customers and authorized by the bank. According to the lawsuits, U.S. Bank's practice resulted in its customers being charged substantially more in overdraft fees than if the debit card and ATM transactions had been posted in the order in which they were initiated and authorized.
"We are pleased to have achieved this result for U.S. Bank customers who were adversely affected by this anti-consumer practice," said Robert C. Gilbert, Plaintiffs' Coordinating Counsel, who oversees and manages this multidistrict litigation with Co-Lead Counsel Aaron S. Podhurst and Bruce S. Rogow.
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GlaxoSmithKline settles healthcare fraud case
Stock Market News |
2012/07/02 11:00
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GlaxoSmithKline Plc has agreed to plead guilty to misdemeanor criminal charges and pay $3 billion to settle what government officials said on Monday is the largest case of healthcare fraud in U.S. history.
The agreement, which still needs court approval, would resolve allegations that the British drugmaker broke U.S. laws in the marketing of several pharmaceuticals.
GSK targeted the antidepressant Paxil to patients under age 18 when it was approved for adults only, and it pushed the drug Wellbutrin for uses it was not approved for, including weight loss and treatment of sexual dysfunction, according to an investigation led by the U.S. Justice Department.
The company went to extreme lengths to promote the drugs, such as distributing a misleading medical journal article and providing doctors with meals and spa treatments that amounted to illegal kickbacks, prosecutors said.
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Peter Madoff pleads guilty in NYC, blames brother
Topics in Legal News |
2012/07/01 11:00
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In pleading guilty to criminal charges, Peter Madoff portrayed himself as a victim of a domineering older brother who he revered right up until an evening in December 2008 when his sibling revealed that his wildly successful investment business was a sham that lost its customers their nearly $20 billion investment.
"I was in total shock," Madoff said Friday as he described the confession by his older brother, Bernard. "My world was destroyed. I lost everything I worked for."
The 66-year-old Madoff, saying he was "deeply ashamed and terribly sorry," spoke angrily about his 74-year-old brother, who is serving a 150-year prison term after admitting his creation of the largest known Ponzi scheme.
"My family was torn apart as a result of my brother's atrocious conduct," he said. "I was reviled by strangers as well as friends who assumed that I knew about the Ponzi scheme."
He said his brother had made it clear that he would never become a partner in the business where he had worked since 1966, even as he was showered with tens of millions of dollars in salary, bonuses and other financial gifts. He made him the investment business's chief compliance officer. |
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Supreme Court turns away media companies' appeal
Court Watch |
2012/06/29 09:56
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The Supreme Court has turned down media companies' plea to lift a prohibition on owning both a newspaper and a television station in the same market.
The justices on Friday denied the companies' appeal without comment. The media outlets say the restrictions no longer make sense in the Internet era.
The appeal also sought to get rid of other ownership limits including how many local television stations one company can control.
The companies say the rules make it harder for broadcasters and newspapers to do business and respond to competitors on the Internet, satellite and cable — entities which don't face the same restrictions.
Critics of media consolidation have warned of the dangers of too many media outlets falling under the ownership of a handful of large corporations.
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Court tosses law about false claims on medals
Court News |
2012/06/29 09:56
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The Supreme Court on Thursday struck down a federal law making it a crime to lie about receiving the Medal of Honor and other prized military awards, with justices branding the false claim "contemptible" but nonetheless protected by the First Amendment.
The court voted 6-3 in favor of Xavier Alvarez, a former local elected official in California who falsely said he was a decorated war veteran and had pleaded guilty to violating the 2006 law, known as the Stolen Valor Act. The law, enacted when the U.S. was at war in Afghanistan and Iraq, was aimed at people making phony claims of heroism in battle.
The ruling, written by Justice Anthony Kennedy, ordered that the conviction be thrown out.
"Though few might find respondent's statements anything but contemptible, his right to make those statements is protected by the Constitution's guarantee of freedom of speech and expression. The Stolen Valor Act infringes upon speech protected by the First Amendment," Kennedy said.
The high court has in recent years rejected limits on speech. The justices struck down a federal ban on videos showing graphic violence against animals and rejected a state law intended to keep violent video games away from children. The court also turned aside the attempt by the father of a dead Marine to sue fundamentalist church members who staged a mocking protest at his son's funeral. In 1989, the court said the Constitution protects the burning of the American flag. |
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Investment Fraud Litigation |
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Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities Arbitration. Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.
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The content contained on the web site has been prepared by Securities Law News as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case. | Affordable Law Firm Website Design by Law Promo |
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