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October 2012 Archives

Regular Checks of Credit Reports Will Help Consumers' Creditworthiness Ratings

In recent studies, it has been reported that the credit reports on which lenders rely in making decisions about consumers’ credit worthiness often contain errors. The end result can be increased borrowing costs for consumers.

Boehringer Ingelheim Settles False Claims Act Case for $95 Million

Boehringer Ingelheim Pharmaceuticals, Inc. has agreed to pay $95 million to settle a False Claims Act case in which it was alleged that the drug company improperly marketed drugs and caused false claims to be submitted to government healthcare programs.

CFPB Investigates Reverse Mortgage Market

The Consumer Financial Protection Bureau (CFPB) is considering issuing rules aimed at preventing abuses in the reverse mortgage market. The agency is responding to an increasing number of claims by consumers who report losing their homes or facing substantial expense as a result of reverse mortgage scams.

Omnicare Settles Suit Whistleblower Suit Over Reimbursement Claims

Omnicare, Inc., a supplier of drugs to nursing homes, agreed to settle a whistleblower lawsuit claiming it paid a kickback in buying a pharmacy company and that it submitted false claims for reimbursement to government health insurers.

Home Healthcare Provider to Pay $9 Million to Resolve Whistleblower Suit

CareAll Management, LLC (formerly known as Diversified Health Management, Inc.) and related entities have agreed to pay $9.375 million to the federal government to resolve a whistleblower suit filed under the False Claims Act.

Amex to Pay $85 Million in Refunds for Illegal Practices

The Consumer Financial Protection Bureau (“CFPB”) announced on October 1, 2012 that three American Express subsidiaries will refund $85 million to approximately 250,000 customers in connection with illegal credit card practices.

New York AG Announces $18 Million Settlement With Food Contractor

The State of New York Attorney General recently announced an $18 million settlement with food management services provider Compass Group USA, Inc. (“Compass”) for improperly overcharging New York schools and school districts. Compass secured discounts from food vendors with which it worked, but did not pass on those savings to New York schools, as required by law.

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