Abstracts » Business, general

Court dismisses $390 million judgment against Meineke in class action suit

Article Abstract:

A three-judge panel of the Fourth U.S. Circuit Court of Appeals in Richmond, Va., threw out a $390 million legal judgment against Meineke Discount Muffler Shops. Franchise owners accused Meineke of skimming $32 million they were required to send to headquarters for national advertising campaigns. A North Carolina federal judge ruled that the case could proceed as a class action lawsuit, and the estimated 2,500 owners were elegible to claim damages. The jury awarded punitive damages totalling more than $600 million. The court of appeals ruled that the decision to allow such a wide class of plaintiffs was incorrect in view of the fact that many owners didn't want to participate.

Comment:

An appeals court threw out a $390 million legal judgment against Meineke

Legal issues & crime, Automotive Repair Services, Automotive Repair and Maintenance, Automotive maintenance, Meineke Discount Muffler Shops Inc.

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Health Care Service Corp. of Illinois agrees to $144 million fraud settlement

Article Abstract:

Health Care Services Corp. has reached an agreement to pay fines and penalties of $144 million for issuing fraudulent records and for hiding poor performance in claims for processing. The Medicare fraud settlement is the largest ever to be imposed on a government contractor. Health Care is also known as Blue Cross Blue Shield of Illinois. The company entered a guilty plea in federal court to eight counts of filing fake claims.

Comment:

To pay fines and penalties of $144 million for issuing fraudulent records and for hiding poor performance in records processing

Government regulation (cont), Accident & Health Insurance, Insurance Carriers, Health Care Services Corp.

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