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The Largest Food Vendor for the Washington D.C. Public School System Agrees to Pay $19 Million to Settle Whistleblower Lawsuit

D.C. Public Schoo  Food Vendor Agrees to Pay $19M

D.C. Public Schoo Food Vendor Agrees to Pay $19M


The largest food vendor for the public school system is Washington, D.C., has agreed to pay $19 million to settle a whistleblower lawsuit alleging that the company overcharged the district and mismanaged the school meals programs, with food often arriving at schools late, often spoiled or in short supply.

The whistleblower served as director of the D.C. Public School’s (DCPS) Office of Food and Nutritional Services from 2010 until he was fired in early 2013. The tipster filed a suit against Chartwells and Thompson Hospitality, two companies that formed a joint venture that provided food services for DCPS starting in 2008. The District’s attorney general issued a complaint and launched an investigation into the allegations, according to The Washington Post (The Post). More The Largest Food Vendor for the Washington D.C. Public School System Agrees to Pay $19 Million to Settle Whistleblower Lawsuit

CVS Health Acknowledges Two of its Florida Pharmacies Sold Oxycodone for Illegitimate Purposes, Agrees to Pay Government $22 Million

CVS Health Corp will pay $22 million to settle a three-year federal investigation into whether two of the company’s pharmacies in central Florida sold oxycodone that was not prescribed for legitimate medical purposes.

The U.S. Drug Enforcement Agency (DEA) announced the deal Wednesday, officially bringing an end to the probe. According to a news release posted on the DEA’s website, Florida is the nation’s “epicenter” for the illegal distribution of prescription drugs. Prescription drug addicts were traveling to Florida to find doctors who would write prescriptions for oxycodone, a powerful and potentially addictive painkiller, as well as pharmacies that would fill the prescriptions, despite signs that they were illegitimate prescriptions. The investigation led to the DEA’s execution of administrative inspection warrants at the Sanford, Florida pharmacies. The government revoked the pharmacies’ licenses in June 2012. More CVS Health Acknowledges Two of its Florida Pharmacies Sold Oxycodone for Illegitimate Purposes, Agrees to Pay Government $22 Million

Tipster Wins 30 Percent of $2.2 Million Award After Former Employer Retaliates Against Him for Blowing the Whistle on Prohibited Principal Transactions

Tipster Wins 30 Percent of $2.2 Million Award

Tipster Wins 30 Percent of $2.2 Million Award


Companies that retaliate against whistleblowers may not only be penalized by the U.S. Securities and Exchange Commission (SEC), they may also distribute part of that penalty to the alleged victim of the retaliation.

The SEC did just that on Tuesday when the agency gave a former employee of Paradigm Capital Management Inc. a 30 percent cut of the penalty that his employer had to pay the federal government for allegedly retaliating against him, the first such action in the nation’s history, according to the Wall Street Journal (WSJ). More Tipster Wins 30 Percent of $2.2 Million Award After Former Employer Retaliates Against Him for Blowing the Whistle on Prohibited Principal Transactions

Medical Device Maker Facing new Bribery Allegations

Medical Device Maker Facing new Bribery Allegations

Medical Device Maker Facing new Bribery Allegations


Medical device maker Biomet is being investigated by the U.S. Justice Department (D.O.J.) due to fresh bribery allegations.

Prosecutors will extend Biomet’s probation for an additional year, the firm announced earlier this week, in light of recent allegations made by an anonymous whistleblower. According to an email written by the whistleblower, distributors hired by Biomet to sell the company’s orthopedic devices paid kickbacks to government doctors. An internal investigation was launched when Biomet disclosed the email to the government, and several employees at the center of the scandal were fired, according to The New York Times (The Times). More Medical Device Maker Facing new Bribery Allegations

Art Dealer Accused of Jacking up the Price of Rare Works of Art by Millions of Dollars Overseas may Have Ripped off New York Galleries

Art Dealer Accused of Jacking up the Price of Rare Works of Art

Art Dealer Accused of Jacking up the Price of Rare Works of Art


The case of an art collector and dealer who allegedly defrauded other art collectors out of millions of dollars is slowly pulling back the curtain on the art world’s dark underbelly of lies and deception – namely, how much dealers stand to gain, and how much collectors stand to lose.

Swiss businessman and art dealer Yves Bouvier is well-known among the world’s wealthiest art collectors. Bouvier is a collector himself, but often buys and sells expensive pieces for clients. He stores them, as well; Bouvier’s large art-shipping company and holdings in storage facilities known as freeports have made him extremely well-known in the world of high-end art. He is the largest client of a Swiss Freeport and owns more of the facilities in Singapore and Luxembourg. Freeports are sprawling, maximum-security storage sites that are often located near airports to allow wealthy travelers to store expensive valuables in duty-free zones. according to CNBC. More Art Dealer Accused of Jacking up the Price of Rare Works of Art by Millions of Dollars Overseas may Have Ripped off New York Galleries

DirecTV Faces Government Lawsuit Over Allegations that it Duped Customers into Signing up for Two-Year Service

DirecTV Faces Government Lawsuit Over Allegations

DirecTV Faces Government Lawsuit Over Allegations


Allegations of a DirecTV deceptive advertising campaign have prompted the Federal Trade Commission (FTC) to file a lawsuit against the satellite television provider.

The Federal Trade Commission (FTC) is suing the satellite television company on behalf of the more than 20 million subscribers in the United States who claim that DirecTV deceptively advertised costs of a two-year service promotion, an agency spokesman said Wednesday. Jessica L. Rich, director of the FTC’s bureau of consumer protection, said the agency is seeking millions of dollars in refunds, according to The New York Times (The Times). More DirecTV Faces Government Lawsuit Over Allegations that it Duped Customers into Signing up for Two-Year Service

Two Recent Court Decisions to Make it Easier for Whistleblowers to File Qui Tam Lawsuits

Court Decisions Make it Easier to File Qui Tam Lawsuits

Court Decisions Make it Easier to File Qui Tam Lawsuits


Filing a qui tam lawsuit under the False Claims Act (FCA) will now be easier for whistleblowers, thanks to two recent court decisions.

The rulings center around the “public disclosure bar,” which dismisses a whistleblower’s case if it is “based upon the public exposure of allegations or transactions” in specific ways, such as via a government “report, hearing, audit or investigation.” The bar is not applicable if the whistleblower is the original source of the information. More Two Recent Court Decisions to Make it Easier for Whistleblowers to File Qui Tam Lawsuits

Flooring Company Facing Class Action Over Allegations That it Sells Defective Products Containing High Levels of Formaldehyde

Company Facing Class Action Over Selling Defective Products

Company Facing Class Action Over Selling Defective Products


The first amended class action complaint has been filed against Lumber Liquidators alleging that some of the company’s flooring products fail prematurely, contain defects and have been associated with very high levels of the cancer-causing agent, formaldehyde.

Plaintiffs in the class action lawsuit allege that their Lumber Liquidators flooring is defective and prone to premature cracking, splitting, warping and shrinking sooner than claimed in the product’s warranty. According to the suit, consumers have also complained that Lumber Liquidator’s flooring contains significantly high levels of formaldehyde, a known carcinogen. More Flooring Company Facing Class Action Over Allegations That it Sells Defective Products Containing High Levels of Formaldehyde

OxyElite Pro Found to Contain Prozac

OxyElite Pro Found to Contain Prozac

OxyElite Pro Found to Contain Prozac


The U.S. Food and Drug Administration (FDA) told consumers on February 28 to be extra vigilant when purchasing weight loss supplements, specifically mentioning OxyElite Pro, which was found to contain a powerful antidepressant drug.

OxyElite Pro is a thermogenic supplement. It is designed to boost metabolism and burn fat, but it increases the body’s internal temperature. More OxyElite Pro Found to Contain Prozac

Computer Manufacturer Faces Lawsuits After Preloading Laptops with Spyware

Computer manufacturer Lenovo has admitted that it preinstalled spyware on 43 models of its laptops, and angry customers are firing back with lawsuits.

The spyware in question is the “Superfish” software – an Internet browser add-on that causes ads to pop up on your screen when you visit websites. According to CNN Money, the software tampers with a widely used system of official website certificates, making it difficult for computers to recognize bogus websites. More Computer Manufacturer Faces Lawsuits After Preloading Laptops with Spyware