Press Room

Better Buses for California School Children

enarh — Wed, 6 Aug 2008 07:15:41 -0700

Release Date

August 6, 2008

Summary

SAN FRANCISCO (August 6, 2008) Environmental Law Foundation, Our Children’s Earth and Communities for a Better Environment, three Bay Area environmental organizations, and Laidlaw Transit, Inc. agreed to a settlement of a lawsuit, under which Laidlaw will provide California’s school children with newer and cleaner buses.

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Laidlaw Transit to Provide Clean School Buses

Under this agreement, Laidlaw will invest a minimum of $4.7 million dollars over the next five years to continue retrofitting buses in its California fleet that are more than five years old with air pollution control devices to reduce diesel exhaust. In addition, Laidlaw will make substantial investments in its fleet over the next seven years by either retrofitting additional buses or purchasing new buses that meet the most stringent air pollution standards in the country.

“This agreement shows that Laidlaw Transit, Inc. and its parent, First Group America, Inc., are committed to protecting public health and the environment and going above and beyond the requirements of the law,” said FirstGroup America spokesperson Glenda Lamont.

“This is a great step forward for public health and the environment. This case provides a great example of the benefits the voters intended when they passed Proposition 65,” said Mike Costa of Our Children’s Earth.

Various state, federal and international agencies agree that diesel exhaust is potentially dangerous
and should be avoided. California limits exposure to diesel exhaust on school buses through an “anti-idling law” that minimizes the amount of time children are exposed to it. However, the agreement reached today goes further by reducing the amount of diesel exhaust the buses generate.

“This is a win-win for children, the environment and Laidlaw’s ongoing operations in California," stated Shana Lazerow, attorney for Communities for a Better Environment.

“With this agreement, Laidlaw is showing that it is possible to provide clean buses to California’s school children. We hope all of the other bus operators follow Laidlaw’s lead,” said Jim Wheaton of the Environmental Law Foundation.

Baron & Budd represented the environmental groups in this litigation.

The National Transportation Safety Board and the National Highway Traffic Safety Administration and other authoritative studies have shown that riding a school bus is safer than taking private transportation, walking or riding a bike to school.

For more information about the foundations and Laidlaw, please see these web links:

Environmental Law Foundation: www.envirolaw.org
Our Children’s Earth Foundation: www.ocefoundation.org
Communities for a Better Environment: www.cbecal.org
Laidlaw Transit, Inc., a member of the FirstGroup America, Inc. companies: www.firstgroup.com

Press Contacts

Baron & Budd P.C.
Susan Jones Knape
214.629.0596

Environmental Law Foundation
James Wheaton
510.208.4555

Communities for a Better Environment
Shana Lazerow
510.302.0430 ext. 18

Our Children’s Earth Foundation
Mike Costa
415.342.0042

About Baron & Budd, P.C.

For more than 30 years, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With more than 50 attorneys and offices in California, Texas and Louisiana, Baron & Budd enjoys a national reputation as a leader of the plaintiffs’ bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; government entities and whistleblowers fighting corporate fraud through qui tam and False Claims Act cases; securities investors defrauded by corporate wrongdoing; and consumers in class actions.

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MTBE Water Contamination Suit Results in Historic Settlement

admin — Wed, 7 May 2008 09:16:36 -0700

Release Date

May 7, 2008

Summary

Dallas, TX – (May 7, 2008) – Representing 153 public water providers, which includes municipalities, water agencies and private water companies, from 17 states, the national law firm of Baron & Budd, P.C. today announced the largest settlement to date with many of America’s leading oil companies over drinking water contamination caused by the gasoline additive Methyl Tertiary Butyl Ether (MTBE). The settlement stems from cases pending in a federal Multi-District Litigation (MDL) court in New York established to hear MTBE cases nationwide.

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Partial Settlement Requires Oil Companies to Pay Substantial Settlement and Treat Wells for MTBE Over the Next 30 Years

Note: The Texas Bar limits the type of information that can be electronically posted by law firms, so, for further information on this case, please contact Susan Knape or Christal Karnaze.

“Today’s landmark settlement marks a significant step toward protecting the long term viability of drinking water resources across the United States” said, Baron & Budd shareholder Scott Summy, one of the nation’s most experienced water attorneys and Co-Lead Counsel for all Plaintiffs in the MDL. “Many of these public water providers were facing federal legislation that would grant immunity to the oil companies for MTBE product liability lawsuits at the time these cases were filed. I am proud to have represented the courageous and responsible water providers and municipal governments who took this step to protect their communities.”

Settling Defendants in the case include BP Amoco, Atlantic Richfield, Chevron, ConocoPhillips, Shell, Marathon, Valero, CITGO, Sunoco, Hess, Flint Hills, El Paso Merchant Energy, and Tesoro. These companies have agreed to pay a substantial amount to the Plaintiffs to address public drinking water wells that are contaminated with MTBE. The settlement also requires the Settling Defendants to pay their share of treatment costs for wells owned or operated by the Plaintiffs that become contaminated by MTBE in the future and qualify for treatment over the next 30 years. Conspicuously absent from the settlement is Defendant ExxonMobil. ExxonMobil has refused to settle and faces the first of numerous trials over MTBE starting in September.

MTBE, which was added to gasoline at varying levels between 1979 and 2007, has leaked from underground storage tanks and contaminated nearby groundwater throughout the United States. Internal oil company documents discovered by Mr. Summy and his colleague Celeste Evangelisti demonstrated that, in the mid-1980s prior to adding MTBE to gasoline on a large scale, many of the oil companies were well aware of the problems posed by MTBE to drinking water, but failed to disclose the risk to government regulators or the public. (Communities for a Better Environment vs. Unocal Corporation). These findings led Mr. Summy to bring MTBE products liability suits across the country – a novel approach at the time.

At extremely low levels, MTBE can give drinking and bathing water the strong taste and odor of turpentine, rendering it non-potable in affected communities. A Drinking Water Advisory issued by the Environmental Protection Agency states that MTBE is a potential human carcinogen.

“No human health studies or long-term carcinogenicity studies on animals were conducted by the oil companies prior to adding MTBE to the nation’s gasoline supply,” said Baron & Budd founder Russell Budd. “The American public should not have been used as guinea pigs.”

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Broward County, Florida auditor fired in retaliation for reporting fraud, whistle-blower suit alleges

enarh — Wed, 20 Aug 2008 09:03:00 -0700

Release Date

August 20, 2008

Summary

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David Richstone claims he was fired from his auditing position with the North Broward Hospital District after he persisted in an investigation that revealed irregular payments to the District's former CEO and President Alan Levine. As a result, Richstone has filed a whistle-blower suit against his former employer alleging that his termination violated Florida's Whistle Blower Act, which prevents corporations from retaliating against employees who challenge an employer's illegal behavior. The former auditor is suing for compensatory damages, back pay and benefits, and for reinstatement to his former position. Richstone's former boss—who also is no longer with the South Florida-based public-health system—admits that he received some improper payments, but claims he is owed more money than he was mistakenly paid.

For the full story, go to Fierce Healthcare.

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Justice Department slow to engage in whistleblower suits involving fraud in Iraq war effort

enarh — Thu, 14 Aug 2008 09:28:36 -0700

Release Date

August 14, 2008

Summary

The number of whistleblower suits brought since 2001 is so great that the Justice Department is unable to keep up with their investigation and prosecution. This appears to be particularly true in suits claiming that government contractors are bilking the government in connection with the war in Iraq. Unfortunately, the delay is costing the U.S. taxpayers money. Suits brought under the False Claims Act in recent years have recovered nearly $13 billion to the U.S. Government.

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The number of whistleblower suits brought since 2001 is so great that the Justice Department is unable to keep up with their investigation and prosecution. This appears to be particularly true in suits claiming that government contractors are bilking the government in connection with the war in Iraq.
Unfortunately, the delay is costing the U.S. taxpayers money. Suits brought under the False Claims Act in recent years have recovered nearly $13 billion to the U.S. Government.

The qui tam provision of the False Claims Act authorizes private citizens to file suit on behalf of the federal government to recover funds owed to it by contractors engaging in fraudulent practices.
Once a case is filed, it is placed under seal until it is reviewed by lawyers at the Justice Department. In cases involving the war in Iraq, it can take years for the government to investigate claims that government contractors knowingly sold defective products or overcharged federal agencies. The Justice Department reports that it has rejected 19 cases alleging government contractor fraud in Iraq and Afghanistan, and that it has 32 more cases currently under investigation.

The Justice Department admits that it is not sufficiently staffed to investigate all the whistleblower suits now on file. But the Department claims that its decisions on the cases concerning Iraq are based on merit, not on politics. Still, even Republican lawmakers have urged the Justice Department to step up the pace. "Whistle-blowers are the key to the secrets locked in closets throughout the federal bureaucracy and government contractors," stressed Sen. Charles E. Grassley (R-Iowa). "These patriotic Americans stick their necks out, against all odds, to help the federal government pursue fraud and save taxpayers tens of billions of dollars that would otherwise be lost."

For the full story, go to the Washington Post.

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Freight companies agree to pay substantial settlement in bid-rigging conspiracy case

enarh — Tue, 12 Aug 2008 16:15:43 -0700

Release Date

August 12, 2008

Summary

In yet another instance of corporate America swindling the U.S. government in its military contracts, seven freight companies have agreed to settle bid rigging claims against them.

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In yet another instance of corporate America swindling the U.S. government in its military contracts, seven freight companies have agreed to settle bid rigging claims against them. The companies, under contract with the Defense Department, move household goods belonging to U.S. military and civilian families. The government filed suit under the False Claims Act case alleging that moving companies in Europe agreed among themselves to raise and to fix the rates charged by the companies for packing and unpacking services performed for U.S. military families stationed in Germany and other countries in Europe. In turn, freight companies working in the U.S. then conspired to submit their bids to the Defense Department at agreed-upon rates that were spiked in accordance with the scheme devised by the European freight companies. As a result of the freight companies' illegal and conspiratorial actions, the U.S. Government overpaid on its transportation contracts for at least two years.

The United States became aware of the conspiracy after two suits were filed—one in Virginia by two employees of one of the German freight companies and another in Missouri by the owner of an American freight forwarding company. The whistle-blower suits were filed under the qui tam provision of the False Claims Act, which allows individual citizens (called “relators”) to make claims on the Government's behalf to recover ill-gotten gains.

The seven settling freight companies are: Air Land Forwarders; Arpin International Group; Covan International; Jet Forwarding; SIRVA, the parent company of Allied Freight Forwarding; Global Worldwide; and North American Van Lines.

For the full story, go to Market Watch.

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Cincinnati Health Providers sued in False Claims Act case

enarh — Tue, 5 Aug 2008 08:08:16 -0700

Release Date

August 5, 2008

Summary

The federal government has filed a civil fraud case against several Cincinnati health care providers: Christ Hospital, the Health Alliance of Greater Cincinnati, Ohio Heart and Vascular Center and the now defunct Medical Diagnostic Associates. The suit alleges that from 1997 to 2004, Ohio Heart and Christ Hospital swapped referrals for patients whose services were billed to Medicare. Under the False Claims Act, the government could ask the court to triple the damages.

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The government's suit springs from a whistleblower action filed in 2003 by cardiologist Harry Fry, which case was sealed until the U.S. joined the case in the spring of 2008. The suit charges that the hospital and cardiologists ran an illegal kickback scheme. According to the complaint, Christ Hospital granted time to cardiologists in its state-of-the-art diagnostic center based on how much business the physicians sent to the hospital for surgical procedures. Further, when patients who required heart procedures arrived in Christ Hospital’s emergency room, those patients were sent along to the cardiologists who generated the most business for the hospital's diagnostic center. The chosen Ohio Heart physicians were allowed to use hospital facilities and equipment without having to pay overhead. Medicare and other federal insurance programs footed the bills. Government attorneys argue that such kickbacks are illegal when Medicare is paying for it.

Dr. Fry filed the initial whistle-blower action under the qui tam provision of the False Claims Act, which allows a private citizen to institute a claim for fraud on the government's behalf and to share in any money received. Under that provision, the whistleblower, Dr. Fry, would be entitled to a share of any recovery.

For the full story, go to http://news.cincinnati.com/apps/pbcs.dll/article?AID=/20080729/NEWS01/307290012.

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Amerigroup reaches settlement of Illinois qui tam litigation

enarh — Mon, 4 Aug 2008 08:48:05 -0700

Release Date

August 4, 2008

Summary

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Healthcare company Amerigroup Corp. (AGP) has announced a settlement agreement to conclude its civil qui tam litigation arising out of the provider's fraudulent Medicaid practices in Illinois. The company will pay a substantial award to the U.S. and the State of Illinois, including a hefty bill for legal fees. The company will also enter into a corporate integrity agreement with the U.S. Department of Health and Human Services, the federal agency that provides partial funding for state Medicaid programs. Such agreements sometimes require a health-care provider to retain a compliance officer, develop written standards and policies, and implement a comprehensive employee training program. Amerigroup will not admit any wrongdoing.

Amerigroup provides managed care for beneficiaries of Medicaid in ten states. A former Amerigroup employee cried foul on the provider's practice in Illinois of discouraging pregnant women and individuals with special needs from enrolling in the plan. The employee-whistle blower, the state of Illinois and the federal government filed suit against Amerigroup, charging that the company defrauded state and federal agencies by such practices. A federal jury awarded the plaintiffs damages, which amount was tripled in accordance with state and federal "whistle blower" statutes. The trial court imposed additional fraud-related penalties. In 2007, the court ordered Amerigroup to pay damages in the nine figures, plus the plaintiffs' attorneys' fees. Amerigroup appealed the judgment to the U.S. Court of Appeals for the 7th Circuit and posted a bond. The settlement was reached while the appeal was pending.

Amerigroup has also announced that, unrelated to the case, it has voluntarily ended its 2006 contract with Illinois and no longer operates there.

For more information, go to http://www.rttnews.com/Content/BreakingNews.aspx?Id=661488&Category=Breaking%20News&SimRec=1&Node=&pageNum=2266_2523_1.

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Sizeable settlement in Grainger “whistle blower” suit

enarh — Sat, 2 Aug 2008 08:50:05 -0700

Release Date

August 2, 2008

Summary

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W.W. Grainger Inc. (GWW) has agreed to pay a substantial amount to settle a lawsuit that accused the Fortune 500 industrial supply company of improperly over-billing the U.S. government on its supply contracts. The lawsuit was filed in federal court in Milwaukee in 2006 by former Grainger executive Brian Holbrook, a district sales manager of government sales. The suit alleged that Grainger routinely cheated the Federal General Services Administration by charging more than double the specified 26% above cost markup rate agreed upon under the government's supply contract. In addition, the whistle blower suit claimed that Grainger obtained and re-labeled products made in non-Trade Agreement countries, such as China and Taiwan, and supplied the products to the government. After the federal government joined in the action, the Justice Department announced that Grainger had not fulfilled the disclosure obligations and pricing provisions of the General Services Administration contract. Following discussions with the Justice Department, Grainger reached the settlement agreement.

Holbrook, the former Grainger employee, filed the "whistle blower" suit under the "qui tam" provision of the U.S. False Claims Act, allowing a private citizen to institute a claim for fraud on the government's behalf and to share in any money received. It is estimated that Holbrook could receive 15%-25% of the settlement proceeds.

For the full story, go to http://www.chicagotribune.com/business/chi-grainger-settles-whistleblower-suit-jul25,0,5572142.story.

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St. Louis University settles “whistle-blower” suit

enarh — Fri, 1 Aug 2008 08:52:36 -0700

Release Date

August 1, 2008

Summary

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St. Louis University, in St. Louis, Missouri, has agreed to pay a sizeable amount to settle a whistle-blower suit accusing the University’s School of Public Health of fraud in connection with federal grants. A former dean of the School of Public Health, Dr. Andrew Balas, initially filed the suit in May 2005 under the federal False Claims Act, alleging that the University had swindled the government by overstating the hours spent by faculty members working on projects funded by grants from the Centers for Disease Control and Prevention. The scheme allowed the school to receive supplemental income from the government for the faculty's phantom “work.” An investigation of the former dean's allegations revealed that the School of Public Health had operated similar schemes to extract additional funding from the National Institutes of Health and from the Department of Housing and Urban Development, as well. Further, the school neglected to follow federal requirements to maintain an accurate tracking system for hours worked on federal grant projects. The terms of the settlement provide that the United States will receive a seven-figure payment in exchange for dismissal of the suit. The government will also perform annual audits with increased scrutiny of the University's participation in federally funded research.

Dr. Balas filed the "whistle-blower" suit under the "qui tam" provision of the federal False Claims Act, allowing a private citizen to institute a claim for fraud on the government's behalf and to share in any money received. Under that provision, the whistle blower, Dr. Balas, will receive a considerable sum as his share of the recovery.

For the full story, go to http://www.coosavalleynews.com/np75945.htm.

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New safety study highlights public safety risk from unhealthy truck drivers

enarh — Tue, 22 Jul 2008 07:15:49 -0700

Release Date

July 22, 2008

Summary

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A new safety study by the Associated Press highlights the consequences of major health problems among tractor-trailer and bus drivers. When the driver of a 40+ ton 18-wheeler suffers a seizure or heart attack, the danger to other drivers and passengers is very real. In some cases, drivers of these large trucks--or "big rigs"--and buses have caused fatal accidents when they had seizures, heart attacks or blacked out while operating their vehicles. Hundreds of injuries and deaths have been caused by these and similar incidents. The Associated Press discovered that hundreds of thousands of drivers are licensed to drive large commercial vehicles, like buses and 18-wheelers, even though their health conditions are so serious they qualify for full federal disability; more than 1,000 drivers had vision, hearing or seizure disorders which raised particular concern.

The Federal Motor Carrier Safety Administration, which is responsible for overseeing tractor-trailer drivers, reports that safety recommendations made by regulators in 2001 have yet to be implemented. The recommendations would set objective standards for determinng whether truckers are medically safe to operate their rigs and would halt efforts by truckers to shop around for a doctor that will ignore a risky medical condition. Gerald Donaldson, senior research director for Advocates for Highway and Auto Safety, called the situations a "major public safety problem."

Although truckers have been caught in volation of federal medical rules in every state, twelve states--Texas, Maryland, Georgia, Florida, Indiana, Pennsylvania, Illinois, Michigan, Alabama, New Jersey, Minnesota and Ohio--accounted for half of the total 7.3 million violations reviewed by the Associated Press. And impaired drivers--whether by health conditions or sleep deprivation--are a leading cause of serious accidents involving 18-wheelers.

For the full story, go to MSNBC.