There has been no shortage of lawsuits filed against Wells Fargo in recent years, from accusations the bank pushed mortgages on borrowers who couldn’t repay them to claims the company pressed employees to engage in fraudulent conduct with regard to customer accounts. Now, a recently unsealed whistleblower lawsuit melds together those issues, claiming the bank encouraged employees to withhold information from customers that could potentially lead to foreclosure proceedings. [More]
Shortly after it was revealed that Volkswagen equipped 11 million diesel-engine vehicles worldwide with emissions-cheating “defeat devices,” rumors began swirling that similar irregularities were present in Daimler vehicles. While the carmaker hasn’t been accused of wrongdoing by regulators, it announced today that it would review its emissions certification process and investigate possibly issues. [More]
Goldman Sachs To Pay $5B To Settle Charges Of Selling Troubled Mortgages Ahead Of The Financial Crisis
Federal and state prosecutors are closing yet another chapter in its investigation related to banks’ roles in the financial crisis. To that end, Goldman Sachs has agreed to pay $5.06 billion to settle claims it misled mortgage bond investors during the period leading up to the crisis. [More]
It’s not against the law to tell people they might be able to save money by slapping some solar panels on their roofs. What is illegal is using millions of unauthorized calls to people on the Do Not Call list to sell those solar panels.
You can now add the University of Phoenix and its parent company, Apollo Education Group, to the list of for-profit educators who find themselves on the defendant end of a whistleblower lawsuit. A former Phoenix employee is accusing the company of submitting false student aid information in order to receive federal funding it was not entitled to. [More]
Back in 2014, we began asking whether everyone should just quit eating raw sprouts, and the sprout industry hasn’t done much to prove that we should since then. One of those companies that was part of the 2014 recalls apparently hasn’t cleaned up its metaphorical act and its literal sprouting facility, and the Food and Drug Administration went through the federal courts system went through the federal courts to stop them from sprouting until the company meets certain conditions. [More]
Three Florida men pleaded guilty recently to assisting in an elaborate telemarketing operation that defrauded $25 million from timeshare owners in the U.S. and Canada. [More]
Back in June 2014, Consumerist showed readers what might have been the scammiest payday loan we’d ever seen. Today, federal authorities arrested the man behind the company, AMG Services — along with his lawyer and another, unrelated, payday lender — for allegedly running online payday lending operations that exploited more than 5 million consumers. [More]
Thousands of homeowners who lost their homes or had their loans modified will receive a portion of a $470 million federal-state settlement with mortgage lender and servicer HSBC to settle allegations the bank engaged in origination, servicing, and foreclosure abuses. [More]
Under the Equal Credit Opportunity Act, creditors are prohibited from discriminating against loan applicants based on race or national origin. But that was a rule Toyota’s financing unit allegedly violated, resulting in thousands of African-American, Asian and Pacific Islander borrowers paying higher interest rates than their white counterparts. Now, in an effort to resolve charges filed by the Consumer Financial Protection Bureau, Toyota Motor Credit Corporation must pay $21.9 million to wronged consumers. [More]
Just a day after the Department of Justice filed a potential multibillion-dollar civil lawsuit against Volkswagen for installing so-called “defeat devices” in vehicles to skirt federal emissions standards, a new report says that the German automaker has run into difficulties finding a fix for the nearly 500,000 affected “clean diesel” cars in the U.S. [More]
It may be a new year, but that doesn’t mean Volkswagen can wash its hands of the ongoing diesel emissions scandal affecting 11 million vehicles. Today, the U.S. Dept. of Justice filed a civil lawsuit against the carmaker over its use of “defeat devices” to cheat on emissions tests.
Is it a crime to knowingly ship food to customers that may be contaminated with deadly foodborne pathogens? Earlier this year, executives from the Peanut Corporation of America were sentenced to federal prison for their roles in an outbreak that made thousands of people sick, killing nine. The beloved ice cream brand Blue Bell may be back on store shelves, but federal investigators are currently asking whether anyone should be held criminally responsible. [More]
You know how it’s almost impossible to ever see one of those big blockbuster films showing at the little movie theater down the street? That issue is largely the result of exclusive agreements between large theater chains and film studios that effectively prevent independent rivals from showing certain films. While these deals might be great for the bigger companies, they aren’t so awesome for consumers. And so, 10 state attorneys general are looking into whether or not the contracts used by Regal Cinemas, AMC Entertainment, and Cinemark constitute antitrust violations. [More]
McDonald’s has agreed to pay $355,000 in civil penalties as part of a settlement with the U.S. Justice Department, to resolve claims that the company discriminated against legal immigrants in the workplace.
UPDATE: For-Profit Education Company EDMC Agrees To Pay $95.5M To Settle Fraud, Recruitment Violations
UPDATE: Education Management Corporation, the operator of for-profit college chains such as Brown Mackie College, Argosy University and the Art Institutes, will pay $95.5 million to settle claims it violated state and federal False Claims Act (FCA) provisions regarding its recruiting practices. [More]
When two major companies decide to get along, it’s not quite so simple as exchanging friendship bracelets — each side usually sees some benefit. For example, airlines United and Delta want to get friendly, so they’ve agreed to swap slots at two New York City-area airports. One hitch, however, is that the United States Department of Justice isn’t a fan of the plan.