Archive for April, 2009


FDA Orders New Warnings for OTC Pain Drugs

The Food and Drug Administration announced Tuesday that it will order the makers of over-the-counter pain relievers to add more prominent labels on products such as Tylenol and Advil warning of potential stomach bleeding or liver damage. News of the labeling change comes as the FDA prepares for a public meeting on how to reduce the risk of liver damage from acetaminophen-containing products. Drug makers must change their warning labels by next April.

Former CEO Settles Fraud Accusations

The former head of a defunct lending company will pay $2.5 million to settle allegations that he and other executives defrauded investors in the wake of the 2007 subprime mortgage crisis. Michael Strauss, the former chief of the American Home Mortgage Investment Corporation, tried to conceal the company’s waning financial health, according the Securities and Exchange Commission complaint. Related lawsuits against Strauss and other former American Home Mortgage executives are still pending.

Whistleblower Lawsuit Yields Settlement

Maxxam Corp. and Houston financier Charles Hurwitz will pay $4 million to settle whistleblower claims that they tried to defraud the government during a 1999 land deal. According the complaint, filed by California Department of Forestry employees, the former owners of the Pacific Lumber Co. submitted fraudulent computer data to government officials. The settlement includes about $1 million in fees and expenses

Builder Settles Plumbing Defect Lawsuit

Richmond American Homes has agreed to pay about $16 million to settle a class-action lawsuit filed by homeowners whose houses were fitted with defective plumbing. Under the settlement, the company will pay to replumb 2,400 homes. Last year, the company paid $10.2 million to replumb more than a thousand homes as part of a settlement in a separate lawsuit.

Construction Company Settles Suit by Family of Cyclist

A Seattle-area construction company has agreed to pay an undisclosed sum to settle a lawsuit by the family of cyclist crushed by a dump truck in 2007. Bryce Lewis died after a Nelson & Sons dump truck turned suddenly while he and another cyclist were riding in a bike lane near the University of Washington. The firm representing the family settled another bicycle-related lawsuit earlier this month for $3.5 million.

Arthur Andersen Reaches Accord with Enron Creditors

A former Enron auditor will pay $16 million to settle claims that it failed to properly vet questionable transactions by the collapsed energy giant. In the lawsuit, Enron creditors accused Arthur Andersen LLP of approving dealings that allowed Enron executives to manipulate the financial standing of the company. A judge is expected to approve the accord next month.

Crewman of Hijacked Ship Files Lawsuit

A crewman from the ship hijacked earlier this month off the coast of Somalia has filed a lawsuit against the ship’s owner and the company responsible for hiring the crew. According to the lawsuit, Maersk Line Limited and Waterman Steamship Corp. failed to provide adequate safety measures to protect sailors traveling in dangerous waters. In addition to damages for physical and emotional injuries, the lawsuit seeks to force to the companies improve anti-pirate security.

Appeals Court Revives Rendition Lawsuit

A federal appeals court has revived a lawsuit accusing a Boeing Co. subsidiary of assisting the CIA in the transportation of terror suspects to foreign countries for the purposes of torture. In a 3-0 ruling, a 9th Circuit Court of Appeals found that the government and Jeppesen Dataplan of San Jose should not be shielded from judicial scrutiny simply because the case may involve state secrets. Justice Department attorneys had argued that lawsuit by alleged torture victims should be barred because of potential threats to national security.

Home Warranty Firm Bilked Customers, Lawsuit Claims

New York Attorney General Andrew Cuomo filed a lawsuit Monday accusing a home warranty company of bilking customers in at least 32 states out of hundreds of thousands of dollars. According to the lawsuit, National Home Protection Inc. refused to honor contracts to repair or replace broken household appliances and systems. A temporary restraining order now prevents the company from selling additional warranties to consumers.

Judge Scolds Prosecutors in Grace Criminal Trial

A federal judge heatedly scolded prosecutors in the criminal trial of W. R. Grace Monday for their mishandling of the case. At a hearing, Judge Donald W. Molloy questioned the prosecutors’ judgment, ethics and tactics. Attorneys for Grace and five of its executives, accused of knowingly contaminating the small town of Libby, Mont., have argued that prosecutors withheld evidence and put on the stand a witness who may have perjured himself.

 

Ted Bills