One of the largest auto insurance companies has reached a $250 million preliminary settlement in a class-action lawsuit. The lawsuit, filed in federal court, alleges that State Farm violated the Racketeer Influenced and Corrupt Organizations Act (RICO Act). The plaintiffs believe State Farm funneled money through several advocacy groups, which in turn kept donor lists anonymous, in order to elect a certain candidate to the Illinois Supreme Court in 2004.
While the newspapers, news broadcasters, and social media may highlight the most high-profile examples of corporate collapses and scandal, they are hardly isolated incidents. Well known corporations are behind some of the biggest scandals of the decade, some corporations include Wells Fargo, McKession Corp., and Equifax. Each story is result of a corporate culture that values profit over accountability, integrity, and opportunity, or in other words wants more "bang for its buck." The potential negative impact for corporate misconduct is the legal consequences, such as penalty, fines, and/or jail time. Despite this, corrupt corporations are willing to commit wrongful acts in order to gain large incentives. "The world's 20 leading banks spent an estimate $350 billion on costs related to misconduct over the last five years, including penalties, fines, settlements, and other legal expenses."
David Antoon, a retired Air Force colonel, has tried multiple times to recover from the Cleveland Clinic for complications he experienced after surgery for prostate cancer. A federal appeals court has rejected his lawsuit. The 6th U.S. Circuit Court of Appeals found Mr. Antoon had no legal standing to bring allegations of fraud against the Cleveland Clinic and his surgeon, Dr. Jihad Kaouk.
On May 29, the Texas Supreme Court issued its decision in Sneed v. Webre, in which it tackled two issued regarding shareholder derivative suits involving closely held corporations: First, whether these suits may be barred by the business judgment rule, and, second, whether Texas recognizes the "double-derivative" standing of a parent company's shareholder tof sue on behalf of a subsidiary. In an important win for shareholders' rights after Ritchie v. Rupe, the Supreme Court answered both questions in favor of the shareholder.
The U.S. Department of Labor is considering new rules to protect retiree-investors by cracking down on arrant investment brokers. The rules would help ensure that retired investors, many of whom rely on their retirement investment accounts to provide for them in old age, are not taken advantage of by brokers harboring undisclosed conflicts of interest. Under the proposed rules, the brokers would be required by law to do what commonsense and basic scruples should dictate anyway: act in the best interest of the retirees who give them their money to invest.
After moving into a new home, you will probably receive a number of "welcome to the neighborhood" offers, many of them advertising services and local businesses. But a number of those letters will be for no purpose other than to separate you from your hard-earned money.
A condo resident in Manhattan's Financial District made homeless by Hurricane Sandy is suing his condominium board and the company that manages his building, alleging fraud and gross negligence.
Brian Harvey, the husband of Phyllis Harvey, has filed a wrongful death lawsuit against Mrs. Harvey's psychiatrist alleging negligence, fraud, fraudulent concealment, and intentional infliction of emotional distress. Mrs. Harvey's psychiatrist, Dr. Alexander Bystritsky, is accused of causing Mrs. Harvey's death by prescribing her dangerous combinations of drugs that altered her heart rhythm. Bystritsky began treating Harvey in 2004, five years after she was diagnosed with bipolar disorder and early dementia/schizophrenia. None of these diagnoses were ever fully confirmed by tests.
"Drug Company Accused of Fraud"