Mike Mozart

Former Wells Fargo Employee Claims Bank Defrauded Government Of $1.4B In Foreclosure Funding

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]

frankieleon

Walmart Sues Visa Over Security Of Debit Card Authorizations

While retailers across the country installing chip-and-PIN card readers to better protect consumers’ bank information during checkout, Walmart claims in a recently filed lawsuit that Visa is urging the retailer to use a less-secure method for verifying debit card payments.  [More]

Defunct Beauty School Settles Whistleblower Suit Accusing It Of Falsifying Records

Defunct Beauty School Settles Whistleblower Suit Accusing It Of Falsifying Records

Two months after abruptly closing its doors as a result of losing access to federal student financial aid, the for-profit Marinello Schools of Beauty has settled a whistleblower case that accused the school of engaging in various schemes to defraud the government of federal financial aid dollars.  [More]

Alan Rappa

Amazon Sues Five Sites Promising Reviews For Cash

Since filing its first lawsuit to block companies from selling fraudulent positive reviews last April, Amazon has taken a number of steps to cutback on the number of fake review peppering its site: data mining reviewers’ personal relationships, tweaking how reviews appear on product pages, and suing more than 1,100 individual reviewers who sell their kind words. Now the e-commerce giant has sued five additional sites, accusing them of selling sham reviews. [More]

Steven Depolo

Debt Collection Lawsuit Mill Hit With $2.5M Penalty

A New Jersey-based law firm that handed out hundreds of thousands of debt-collection lawsuits based on false or nonexistent information must — along with an associated debt buyer — pay $2.5 million in penalties to settle federal accusations that they were operating a lawsuit mill in violation of the law.  [More]

Carnival Might Delay First Trips To Cuba

Carnival Might Delay First Trips To Cuba

Less than a month after Carnival Cruise Line received the official go-ahead for crises from the United States to Cuba, the company’s May start date could be delayed.  [More]

Rachel

Travel Agents Accuse United, American & Delta Airlines Of Price Conspiracy

Last summer, the Department of Justice announced that it had opened an investigation into alleged collusion between major airlines to keep ticket prices high. Now, a group of travel agents are accusing three major airlines of also conspiring to raise prices for trips with multiple stops.  [More]

Midwest Career College Abruptly Closes Doors, Files For Bankruptcy

Midwest Career College Abruptly Closes Doors, Files For Bankruptcy

Thousands of students attending Wright Career College in Oklahoma, Nebraska, and Kansas are now scrambling to figure out how to finish their education after the school abruptly closed its doors and filed for bankruptcy.  [More]

Greiner Construction

Nursing Students Sue ITT Tech Over Misleading Enrollment Practices, Substandard Program

The lawsuits continue to pile up for embattled for-profit college company ITT Education Services. Just days after the Massachusetts Attorney General filed a suit alleging the operator of the ITT Technical Institute brand engaged in a slew of abusive and misleading practices, a group of 11 Tennessee nurses have filed their own complaint accusing the company of deceiving students during the recruitment process about the school’s accreditation prospects.  [More]

(eyetwist)

Pennsylvania Man Charged With Racketeering For $688M Payday Loan Operation

A Pennsylvania man, known for helping to usher in the payday loan movement, has been charged with racketeering for his alleged part in a scheme that bilked more than $688 million from consumers and defrauded 1,400 others from a million-dollar settlement.  [More]

(Sandro Menzel)

VW Dealers Sue Carmaker For Fraud Over Emissions-Cheating Diesels

A week after the Federal Trade Commission sued Volkswagen for deceptively advertising “clean diesel” cars equipped with “defeat device” software to cheat on emissions tests, the carmaker finds itself on the receiving end of another big lawsuit — this time from its own dealers, who accuse VW of intentionally defrauding them.

[More]

Mike Mozart and 
frankieleon

Staples & Office Depot Ask Judge To Toss Antitrust Lawsuit Without Defending Merger

Two weeks after the beginning of a federal court hearing on the proposed mega-merger between Office Depot and Staples, the office supply chains’ lawyers have decided not to present a defense against the Federal Trade Commission’s claim that the deal is bad for consumers and businesses.  [More]

Massachusetts Sues ITT Technical Institute For Allegedly Harassing, Misleading Students

Massachusetts Sues ITT Technical Institute For Allegedly Harassing, Misleading Students

Trouble continues to mount for ITT Educational Services. The for-profit college operator behind the ITT Technical Institute chain is already under investigation over concerns it may have defrauded the federal government, and now faces a lawsuit from the Massachusetts Attorney General for allegedly engaging in a slew of abusive and misleading practices.  [More]

Mike Mozart

Wells Fargo Must Pay $203M To Customers After Supreme Court Rejection

Nearly six years after a federal court ordered Wells Fargo to pay $203 million in refunds to customers victimized by the bank’s overdraft policies — and after years of bouncing back and forth through the appeals process — the U.S. Supreme Court has decided to let that judgment stand. [More]

(Mr. T in DC)

Lawsuit: Target Failed To Pay New York Warehouse Workers Overtime

A group of Target warehouse employees in New York filed a class-action seeking lawsuit against the retailer, accusing the company of misclassifying workers with low-level management responsibilities so they wouldn’t receive overtime pay.  [More]

Corinthian Colleges Allegedly Recruited Homeless Students, Advertised Non-Existent Programs

Corinthian Colleges Allegedly Recruited Homeless Students, Advertised Non-Existent Programs

Just when you think the accusations levied against now-defunct for-profit college chain Corinthian Colleges couldn’t get worse — inflating job placement rates, grade manipulation, and questionable marketing practices — they do. The California Attorney General’s office filed thousands of pages of documents and testimony as part of its ongoing lawsuit against the school highlighting an even more egregious practice: allegedly recruiting homeless students and assisting them in taking out thousands of dollars in loans they could never repay.  [More]

Mike Mozart and 
frankieleon

Staples, Office Depot: FTC’s Opposition To Billion-Dollar Merger Is “Flawed,” “Wrong”

Three months after federal regulators filed a lawsuit to stop the nightmare dream formation of the $6.3 billion StaplesMaxDepot Voltron , the CEOs of the mega-office supply chains are fed up, and they’re taking that frustration to the customers by airing their true thoughts on the Federal Trade Commission’s attempt to stop the deal.  [More]

frankieleon

Feds Shut Down Illegal Student Loan Debt Relief Operation

Last December, the Consumer Financial Protection Bureau filed a lawsuit against Student Loan Processing.US, a debt relief operation, that allegedly reaped millions of dollars from thousands of consumer by promising to provide repayment benefits that come free of charge with federal student loans. Today, the agency took steps to put an end to the organization once and for all.  [More]