Archive for November, 2008


Wal-Mart to Pay Customers for Scanning Errors

Customers who are the victims of price-scanning errors at California Wal-Mart stores will receive $3 for the mistake, as part of a settlement reached between the retail giant and the state. A two-year investigation revealed that 164 California Wal-Mart stores overcharged customers between 2005 and 2007. Wal-Mart has also agreed to pay nearly $2 million in fines and other penalties.

Insurer Settles Eating Disorder Class Action

Plaintiffs involved in a class action over the denial of insurance benefits to eating disorder patients could receive more than $1 million, as part of a preliminary settlement offer proposed Monday. Horizon Blue Cross Blue Shield of New Jersey said it would pay up to $3.6 million to resolve the complaint and make internal changes to address future eating disorder claims more liberally. The settlement includes more than $2 million in attorneys fees and must still by approved by a federal judge.

VA Settles Suit Over Surgical Death

An Illinois Veterans Affairs hospital has agreed to pay nearly $1 million to settle a lawsuit filed by the widow of a man who died there last year after undergoing gallbladder surgery. In the lawsuit, Katrina Shank accused the hospital of medical negligence and failing to perform an adequate background check on the doctor who performed the surgery. A subsequent VA inspection found that substandard care at the hospital led to dozens of serious injuries and several deaths.

Hospital Chain Shows History of Abuse

A chain of private psychiatric hospitals is under scrutiny following a string of injuries and deaths at its facilities. A watchdog investigation revealed that facilities owned by Psychiatric Solutions Inc. were significantly more likely to be cited for abuse or neglect than other hospitals providing similar services. Company officials have rejected such statistics, characterizing them as invalid

Jury Awards Damages to Man Crushed by Weights

A California jury has awarded a former law student $11 million for injuries he suffered when weightlifting equipment he was using collapsed on him. Jurors found that Flex Equipment Co. and its insurer were negligent for failing to install proper safety features. Gold’s Gym in Venice, the site of the accident, had previously settled with the plaintiff for $7.3 million.

Food Labeling May Mislead Consumers

The recall of Whole Foods Market chocolate bars earlier this year is just one example of how food chains may be misleading consumers with product labeling. Advocates say that despite labeling many products still fall victim to contamination from common and dangerous allergens. The Food and Drug Administration is currently studying whether tougher enforcement policies are needed to police how companies use labeling to inform consumers and protect themselves from liability.

Gift Cards Pose Financial Risk to Buyers

Let the buyer beware when purchasing a gift card this holiday season, especially if the restaurant or retailer is in financial trouble. According to a research and advisory firm, consumers lost about $100 million on gift cards issued by bankrupt businesses in the past year. Compounding the problem is the lack of standardized protection for consumers stuck with cards they can no longer redeem.

Nestle Recalls Lean Cuisine Meals

Nestle Prepared Foods Co. on Tuesday announced the recall of three types of frozen meals. According to the company and the Department of Agriculture, consumers reported finding small pieces of blue plastic in the entrees. One injury has been reported in association with the recall, the Department of Agriculture said.

Lawsuit Filed in Fatal Semi-Truck Crash

An Iowa woman has filed a lawsuit against a Wisconsin trucking company following a crash that resulted in the death of her two children. According to the lawsuit, the semi-truck driver was traveling too fast for icy conditions at the time of the accident and failed to take action to avoid the woman’s vehicle. The woman and her children had been involved in a separate crash collision prior to the deadly crash.

AARP to Instigate Allegations of Deceptive Marketing

The American Association of Retired Persons has voluntarily suspended the sale of certain health insurance policies pending an outside investigation into how the products were marketed and sold. Investigators will seek to determine if the limited benefit policies, sold by UnitedHealth and endorsed by AARP, were wrongly marketed as comprehensive coverage. Senate leaders had previously criticized the policies after uncovering evidence of deceptive marketing.

 

Ted Bills