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July 2012 Archives

Abbott Laboratories to Pay $1.6 Billion to Settle Deceptive Marketing Claims

Abbott Laboratories (“Abbott”) recently announced that it will pay $1.6 billion to settle various federal and state claims that it improperly marketed the prescription drug Depakote for off-label uses. Abbott will pay $800 million to resolve civil claims brought by the federal government and states, $700 million in criminal penalties, and another $100 million to states to resolve consumer protection claims.

CFPB Announces Plans to Simplify and Clarify Mortgage Disclosure Forms

As it approaches its one-year anniversary, the Consumer Financial Protection Bureau (“CFPB”) announced plans for overhauling the home mortgage market as a first step toward improving its fairness and clarity.

J&J Agrees to $2.2 Billion Settlement of Unlawful Marketing Claims

Johnson & Johnson (“J&J”) has purportedly reached a settlement with the Justice Department which will have the healthcare giant paying $2.2 billion to resolve unlawful marketing claims. The settlement would include a criminal fine of approximately $400 million for the unlawful promotion of the antipsychotic drug Risperdal.

NC Hospital Pays $1.9 Million to Settle Whistleblower Lawsuit

Rex Hospital, based in Raleigh, North Carolina, has agreed to pay the federal government $1.9 million to settle Medicare fraud charges. The qui tam (or “whistleblower”) lawsuit alleged that hospitals were keeping Medicare patients overnight unnecessarily following a back procedure known as “kyphoplasty.”

CFPB Proposes New Rule Requiring Transparent Mortgage Disclosures

The Consumer Financial Protection Bureau (“CFPB”) has submitted a proposed rule to the Federal Register that would create plain-English, more transparent mortgage disclosures.

American Banker Reports on Challenges to Lenders' Force-Placed Insurance Practices

American Banker, the nation’s leading publication dealing with the banking industry, reported on mounting challenges to lenders’ alleged self-dealing with force-placed hazard or homeowner’s insurance.


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