Archive for 2010

Informants rejoice

It seems the Senate-passed financial reform bill includes whistleblower bounties and other legal goodies. [Whistleblower Law Blog] On tax informants, see our post of Wednesday.

Bonus: Amy Kolz at American Lawyer (“Serial whistle-blower Joseph Piacentile makes millions helping the government uncover fraud. That’s how the False Claims Act is supposed to work. Or is it?”). And David Walk at Drug and Device Law assails as “dumb,” credulous, and based upon a biased sample a New England Journal of Medicine feature on whistleblowing in the pharmaceutical industry:

The New England Journal of Medicine bills itself as “the world’s most influential medical journal,” and it unquestionably publishes groundbreaking articles about medicine. But all too often in recent years the NEJM has strayed from what it knows — medicine – into what it doesn’t – law and public policy, particularly tort policy. No longer content with editorials encouraging litigation against anyone but doctors, the NEJM now publishes public policy advocacy pieces dressed up as scientific studies, with the implicit suggestion that those studies should get the benefit of the NEJM’s good name in public policy debates.

California: “Elaborate, decade-long towing scam”

According to prosecutors in Santa Clara County, a “lawsuit mill” formed part of an extensive “tow-and-sue” criminal scheme in which a towing operator sold towed cars without notifying the owners and then added insult to injury by going after the owners for storage and handling fees. Paul Stephen Greer, also known as Vincent Cardinalli Jr., pleaded no contest to fifty-nine felonies. Prosecutors say Greer, who operated tow trucks in Clovis, Gilroy and Hollister, sued parties that did not own the vehicles, arranged for falsified proof of service so as to obtain quick default judgments against defendants never apprised of his suits, and engaged in perjury. [San Jose Mercury-News, press release]

Volkswagen sunroof class action settlement

Lawyers sued German automaker VW charging that water could leak into the car from the sunroofs on some of its models. Ted Major is not enthralled with the resulting settlement:

For many class members (such as myself), the only benefit they will receive is a piece of paper to put into the owner’s manual that says “check your sunroof drains every 40,000 miles.” That’s it, no reimbursement, no inspection, no free drain cleaning, nothing.

Lawyers say that and other benefits to class members, including an $8 million repair fund, are worth $125 million and justify a fee of $30 million plus $1.5 million in expenses. A fairness hearing in federal court in New Jersey is scheduled for June 26.