West Virginia Personal Injury Lawyer - Miscellaneous

BAR/BRI Charging Too Much for Test Preparation?

Mike Simon — Sat, 04 Aug 2007 15:39:47 GMT

A new class action lawsuit has been filed against the country's biggest bar exam preparation company, BAR/BRI bar review, alleging that the company fraudulently and deceptively induced students from New York law schools to purchase BAR/BRI products at inflated prices. The plaintiffs in the $48 million suit are two 2005 graduates and one 2006 graduate from Albany Law School.

The initial class action lawsuit filed was filed on April 29 against BAR/BRI bar review and the West Publishing Corporation, and Kaplan, Inc. The suit claimed that BAR/BRI withdrew from the LSAT preparation business and Kaplan agreed not to enter the bar-review course market, resulting in BAR/BRI students being overcharged, on average, $1000 each, or $300 million collectively. A federal judge approved a $49 million settlement in early July.

Every year, between 35,000 and 40,000 people graduate from the nearly 200 law schools approved by the American Bar Association, and many take a BAR/BRI course. BAR/BRI advertises the course heavily at law schools and hires law students to serve as on-campus representatives.

This is the second antitrust action filed against BAR/BRI. The first was settled for $49 million.

Originally posted at InjuryBoard by Mike Simon

The Arbitration Fairness Act of 2007 Considered by Congress

Mike Simon — Thu, 26 Jul 2007 16:39:12 GMT

On July 12th, the Arbitration Fairness Act was introduced to the House and the Senate to amend the Federal Arbitration Act, which was passed in the 1920's. The proposed bill would make clauses in contracts that mandate arbitration and prohibit joining class action lawsuits unenforceable. The bill aims to prevent mandatory arbitration in employment, consumer, franchise, or civil disputes.

Leo Bueno, a Florida debt and consumer attorney highlighted the downsides of such clauses by pointing out that the idea behind arbitration is sound, but that "the mandatory nature of it is offensive...because it takes out the right to sue." Paul Bland, a staff attorney with a D.C. based public-interest law firm, adds that arbitrators who rule against companies too often get blackballed. Bland's comments reveal a harsh reality for consumers, in that companies are typically repeat arbitration customers, and therefore pressure the private arbitration companies to rule in their favor.

Speaking in terms of arbitration legislation, Bland added that "this is, by far, the most comprehensive bill that has been introduced." Proponents of the bill hope to protect Americans' seventh amendment right to a trial by jury.

Originally posted at InjuryBoard by Mike Simon

Court to Hear Katrina Insurance Appeal

Mike Simon — Tue, 10 Jul 2007 08:32:13 GMT

The 5th U.S. Circuit Court of Appeals will hear arguments on whether Nationwide Mutual Insurance Co. should be forced to cover storm surge damage to the home of Paul and Julie Leonard resulting from Hurricane Katrina. Oral arguments will be heard on August 6th.

U.S. District Judge L.T. Senter Jr. ruled in 2006 that the Leonards could not collect damages from a Katrina storm surge because wind-driven water damage is not included in Nationwide's coverage. Nationwide has appealed the ruling because Senter also ruled that the Leonards could be compensated for damage that they can prove was caused by high winds.

If the ruling is not overturned, a precedent could be set, through which hundreds of other court challenges to the insurance industry for denying billions of dollars in claims after the hurricane could prevail.

Originally posted at InjuryBoard by Mike Simon

Coal Company Ordered to Pay Wheeling-Pitt $219 Million

Mike Simon — Fri, 06 Jul 2007 08:10:01 GMT

After a month-long trial, a Brooke County Circuit Court jury has ordered Massey Energy and a subsidiary to pay more than $219 million in damages to Wheeling-Pittsburgh Steel Corporation. Wheeling-Pitt sued Massey subsidiary Central West Virginia Energy Co. in April 2005, claiming it failed to deliver 104,000 tons of metallurgical grade coal per month as required under a contract signed in 2002 that runs until 2010.

Wheeling-Pitt's lawsuit alleged that Central West Virginia Energy blamed production problems for its failure to deliver as required by the contract. However, Wheeling-Pitt claims that the Massey subsidiary started diverting coal from its contract to the spot market in an effort to make more money.

The jury ordered Massey and Central West Virginia Energy to pay Wheeling-Pitt $119.8 million in compensatory damages, as well as $50 million each in punitive damages from both parties. Wheeling-Pitt's attorney stated that, "When the price of coal went up, Massey started cheating Wheeling-Pitt by shorting it and sending its coal abroad and making millions of dollars." Massey's executive vice president, Baxter Phillips, claimed that the company "will most certainly appeal."

For more information on this subject matter, please refer to our section detailing Toxic and Hazardous Substances.

Originally posted at InjuryBoard by Mike Simon

Judge Approves $64 Million Settlement Over Drug Paxil

Mike Simon — Wed, 06 Jun 2007 15:28:49 GMT

A judge in Madison County, Illinois granted final approval in late May for a settlement in a class action deal, in which parents, who purchased GlaxoSmithKline PLC's Paxil or Paxil CR for their children may seek reimbursement for their purchase of the antidepressant.

The suit alleged that GlaxoSmithKline misled consumers by failing to disclose information about negative side effects, such as increased suicidal behavior. The $64 million deal provides an opportunity for parents to recover money spent on the drug, upon furnishing proof of purchase. Parents who no longer have proof in the form of pharmacy records or receipts may receive up to $100, upon signing a claim form under threat of penalties for lying.

Parents should be advised that claim forms must be filed by August 31, and are available online.

The settlement does not preclude, however, anyone with a personal injury claim, such as parents whose children committed suicide during treatment with Paxil, from suing GlaxoSmithKline. Additionally, insurers and government agencies, which made the majority of payments, may also file suit against the British company.

Originally posted at InjuryBoard by Mike Simon

Judge OKs $7.4M settlement for U.S. Patients Who Said They Had Unnecessary Heart Procedures

Mike Simon — Tue, 22 May 2007 08:52:32 GMT

A Louisiana hospital agreed to pay $7.4 million to settle its part of a class action suit accusing a cardiologist of doing unnecessary angioplasties and other procedures. Half of the amount will be shared by 305 former patients and the rest will pay litigation costs and attorneys' fees in the suit against Our Lady of Lourdes Regional Medical Center.

The attorneys are still seeking damages from the cardiologist himself, Dr. Mehmood M. Patel, and Lafayette General Medical Center, where he also practiced.

Patel charged in federal court with billing Medicare, Medicaid and insurance companies $2.5 million for unnecessary procedures on 77 patients- denies the allegations. He could face up to 20 years in prison if convicted.

Originally posted at InjuryBoard by Mike Simon

Allstate Hit with $2.8 Million Verdict

Mike Simon — Fri, 11 May 2007 15:49:10 GMT

On April 16, a federal jury in New Orleans awarded a verdict of $2.8 million in an insurance dispute to a man who lost his home in Hurricane Katrina. The jury found that Allstate did not pay enough money to cover wind damage caused to the home by the hurricane. In what has become a standard position of insurers confronted with Katrina claims, Allstate claimed that most of the damage was caused by storm surge, which was not covered under the policy.

The jury concluded that Allstate owed the man an additional $561,600 for payment of the wind damage, and an additional $2.25 million for failing to pay the claim in a timely manner following the storm that occurred almost two years ago.

In the litigation Allstate accused its insured of misrepresenting his claim, alleging that he was requesting Allstate to pay for a boathouse that was not covered under the policy. The jury rejected Allstate's claim.

Originally posted at InjuryBoard by Mike Simon

Allstate Ordered to Reduce Rates

Mike Simon — Fri, 06 Apr 2007 10:48:33 GMT

The Texas Department of Insurance has ordered Allstate to reduce its homeowners insurance rates to Texas homeowners by 5 percent. The order has been affirmed by the Travis County District Court.

The litigation began after an analysis by the Department of Insurance revealed that the rates were excessive. Under the order, Allstate will be required to refund its customers an estimated $56 million.

The Texas Department of Insurance launched another review of homeowners insurance rates early in March after a review of current rates showed that the insurers had another year of solid profits. A study by the Department of Insurance showed that home insurers in Texas had an average loss ratio of 34 percent in 2006, meaning insurers paid out only 34 percent of the premiums they took in to cover property losses.

Originally posted at InjuryBoard by Mike Simon

State Farm Looks Again At Katrina Cases

Mike Simon — Thu, 29 Mar 2007 12:31:32 GMT

As part of a deal with the Mississippi Insurance Commissioner, State Farm has agreed to reexamine 35,000 claims arising out of Hurricane Katrina. The agreement includes claims that are in mediation, those that already in lawsuits, and those that already have been settled.

Under the terms of the deal, State Farm will make a minimum of $50 million available to settle the claims.

Not all viewed the announcement as favorable. Attorneys handling a class action suit against State Farm recently withdrew their request that the court where the case was pending approve the settlement. The request was withdrawn because the parties could not come to an agreement to finalize the deal. According to the attorneys involved in the class action, State Farm's deal with the Mississippi Insurance Commission is a watered down version of the proposed settlement of the class action suit. Moreover, those attorneys believe that the deal could lead to the claimants still receiving low offers from State Farm, and then having little to no recourse.

Originally posted at InjuryBoard by Mike Simon

Mylan Accused of Accepting Pay-off From Competitor

Mike Simon — Wed, 21 Mar 2007 09:27:27 GMT

A lawsuit filed by The Prescription Access Litigation Project, a consumer action group, alleges that Mylan Laboratories, Inc. accepted money from Cephalon, one of its competitors, to delay marketing of a generic version of the drug Provigil.

Generic drugs typically cost much less, and the suit alleges that consumers paid more as a result of the $136 million pay-off Mylan and other generic drug manufacturers received from Cephalon. As a result of generic drugs not entering the market, the plaintiffs allege that Cephalon was able to substantially increase its profits at the expense of consumers.

The plaintiffs in the suit include: Vista Healthplan Inc., a Florida health-benefits provider; the Pennsylvania Turnpike Commission, which pays medical benefits for more than 2,000 employees; and the Pennsylvania Employees Benefit Trust Fund, which provides health coverage to more than 270,000 beneficiaries.

Along with Mylan, named defendants include: Barr Laboratories of Pomona, New York; Ranbaxy Laboratories, based in New Dehli, India, with offices in Princeton, New Jersey; and Teva Pharmaceutical Industries, based in Petach Tikva, Israel, with offices in North Wales, Pennsylvania.

Mylan is based in Canonsburg, Pennsylvania, and its biggest production facility is in Morgantown, West Virginia.

Originally posted at InjuryBoard by Mike Simon