The Chanler Group

Companies Face Wave of Lawsuits Over Flame Retardants in Products– by Fiona Smith at the Daily Journal

February 13, 2013

Excerpted from the full article at the San Francisco Daily Journal:

Two lawyers are poised to unleash a flood of lawsuits against a slew of major companies alleging that they are failing to warn the public about the dangers of flame retardants in their products.

The controversy centers on the cancer-causing chemical chlorinated tris, which regulators recently listed under the state’s unique toxics warning law Proposition 65. The 1986 voter initiative requires companies to alert the public if they could be exposed to hazardous levels of hundreds of different chemicals.

Since the requirement to warn over tris began in October, lawyers for a nonprofit and a few individuals allege they have found high levels of tris in everything from upholstered furniture to crib mattresses to children’s nap pads.

The two firms, The Chanler Group and the Lexington Law Group, have threatened to sue around 100 companies including J.C. Penney, Wal-Mart, Munchkin and Graco Children’s Products alleging they are failing to post Proposition 65 warnings.

As the required 60-day waiting periods to file suits are starting to expire, litigation could start any day. Veteran Proposition 65 attorney Clifford A. Chanler, who is behind most of the claims, is promising to aggressively go after the companies and defense attorneys are already preparing for what could be a costly and complicated legal fight. link to source
 

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Corning to Pay $5.65M for False Claims, Whistleblower to Get $904K

March 9, 2013

New York-based Corning Incorporated has agreed to pay $5.65 million to the U.S. government to resolve allegations that it knowingly presented false claims for laboratory research products it sold to federal agencies through its Life Sciences division.

In 2005, Corning entered a contract to sell laboratory research products to the federal government through a program that provided authorized purchasers with a streamlined procurement process for commonly used goods and services.  The suit alleged that Corning knowingly failed to fulfill its contractual obligation to provide the program with information about its discounts to other customers and made false statements about its sales practices, leading to the government receiving lower discounts and paying more for Corning products than it should have.

The suit was brought under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens to bring suit for false claims on behalf of the government and share in the recovery.  Kevin Jones, a former Corning Life Sciences sales representative, will receive $904,000 as his share of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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Illinois Nursing Home to Pay $29 Million Penalty for False Claims Act Violations

February 11, 2013

A jury ordered a nursing home in Illinois to pay a total of $29 million in penalties for false Medicare claims to the government.  Two former employees at the facility filed a complaint that the home allegedly destroyed and/or forged records to make it appear that residents were receiving appropriate care and medications, while residents allegedly went without food or medication, developed bedsores and scabies, and were left to lie in their own waste.  The jury found that the government suffered losses of over $3 million due to the submission of over 1,700 false Medicare claims and awarded the maximum penalty of $11,000 for each false claim.  The two whistleblowers received $400,000.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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Pirate Toy Guns Recalled Due to Lead Violation

September 27, 2012

Captain Cutlass Pirate Pistol Toys are being recalled due to their surface paints containing levels of lead that exceed federal safety standards.  The toys were sold at Halloween and specialty stores nationwide from April 2008 through May 2012.  Consumers are advised to stop using the product and contact Dillon Importing for instructions on returning the product for a full refund.

Manufacturers, distributors, or retailers that discover that a product contains a defect that poses a substantial hazard to costumers are required to immediately inform the Consumer Product Safety Commission, who may then mandate a recall or other action.  Interested persons who discover such a defect also have the right to enforce a Consumer Product Safety rule or order, by providing the alleged violating company with a notice that its products are in violation.  The Chanler Group is willing to represent such interested persons.

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CIA Contractors to Pay $3M Settlement, Whistleblower to Get $585K

March 8, 2013

American Systems Corporation, Anixter International Inc., and Corning Cable Systems LLC have agreed to pay the U.S. government $3 million to settle allegations that they violated the False Claims Act and the Anti-Kickback Act while bidding on a contract with the CIA, the U.S. Justice Department announced today.  The United States alleged that the three companies provided CIA employees and outside consultants with meals, entertainment, sporting tickets, and other gifts and gratuities while bidding on a contract to provide the CIA with supplies and services.

Anixter sales representative William Jones first initiated the lawsuit under the qui tam, or whistleblower, provisions of the federal False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud or false claims to sue on behalf of the government and share up to 30% of the recovery obtained by the government.  Jones will receive $585,000 as his share in this settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud perpetrated against the government including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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American Chemistry Council Sues to Stop OEHHA from Adding BPA to Prop 65 LIst

March 1, 2013

The L.A. Times reports that the American Chemistry Council (ACC) has filed suit to halt the addition of Bisphenol-A (BPA) to the Prop 65 chemical list.  ACC filed suit in Sacramento against the California Environmental Protection Agency's Office of Environmental Health Hazard Assessment (OEHHA)--the state agency responsible for implementing Proposition 65 and designating chemicals as known to the State of California to cause cancer or reproductive harm--to prevent a health hazard warning requirement from being imposed on the use of BPA in consumer products.  BPA is a chemical used in the lining of food cans and in reusable plastic water bottles, toys and containers.  ACC alleges that OEHHA’s proposed listing of BPA conflicts with the reasoned judgment of scientific experts.  Allan Hirsch, chief deputy director of the EPA's Office of Environmental Health Hazard Assessment, said that a 2008 report of national scientific experts found "clear evidence that BPA causes developmental toxicity in laboratory animals," according to the Times.

The Chanler Group represents citizen enforcers who, acting in the public interest,  enforce each citizen’s right to know when they are exposed to toxic chemicals found in consumer products sold in California and who hold companies accountable for unwarned exposures through imposition of civil penalties and injunctive relief, often requiring the removal of the offensive chemicals. Clients of The Chanler Group have issued dozens of Proposition 65 notices to manufacturers and retailers regarding the presence of toxic chemicals in their products that are sold in California without a warning.

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Court Grants Default, $72,000 in Prop 65 Fines Against Liberty Apparel

March 2, 2013

The Marin County Superior Court recently entered a Proposition 65 default judgment in favor of TCG client Russell Brimer and against Liberty Apparel Company, permanently enjoining Liberty Apparel from selling any jeans with belts made from materials containing the chemical lead without first providing a clear and reasonable warning of the carcinogenic and reproductive harm associated with lead.  The court imposed $72,000 in civil penalties against Liberty Apparel for its violations of Proposition 65.  Seventy-five percent of the penalties imposed will be paid to the State of California.

The Chanler Group represents citizen enforcers who, acting in the public interest,  enforce each citizen’s right to know when they are exposed to toxic chemicals found in consumer products sold in California and who hold companies accountable for unwarned exposures through imposition of civil penalties and injunctive relief, often requiring the removal of the offensive chemicals. Clients of The Chanler Group have issued dozens of Proposition 65 notices to manufacturers and retailers regarding the presence of toxic chemicals in their products that are sold in California without a warning.

 

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Consumer Product Safety Commission Issues Final Rule on Phthalates in Toys

February 14, 2013

The Consumer Product Safety Commission issued its final rule today regarding phthalates in inaccessible component parts in children’s toys and child care articles.  The Consumer Product Safety Improvement Act of 2008 (CPSIA) permanently prohibits the sale of any “children's toy or child care article” containing more than 0.1 percent of three specified phthalate chemicals: DEHP, DBP, and BBP.   The CPSIA also prohibits, on an interim basis, “toys that can be placed in a child's mouth” or “child care article” containing more than 0.1 percent of three additional phthalates: DINP, DIDP, and DnOP.

The final guidance is that phthalates may be included in children’s toys and child care products so long as they are in inaccessible components.  Components are inaccessible if they are not physically exposed or will not become exposed through reasonably foreseeable use and abuse of the product, such as by swallowing, mouthing, breaking, and aging.  Fabric coverings are considered to be an acceptable barrier unless the component is smaller than 5 centimeters (because it can then be placed in the child’s mouth, and fabric is no longer a barrier once it is wet), and unless the product is a mattress or other sleep surface.  Paints, coatings, and electroplating are not considered to be barriers.

For more than 20 years, The Chanler Group has successfully represented citizen enforcers acting in the public interest to enforce the right to be informed of the presence of chemicals, such as phthalates, contained in consumer products offered for sale without a health hazard warning.  Settlements obtained by TCG clients regarding consumer products have resulted in millions of dollars in civil penalties being paid to the State of California.

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Healthpoint to Pay up to $48 Million for False Medicare and Medicaid Claims

December 6, 2012

Healthpoint Ltd. and DFB Pharmaceuticals have agreed to pay up to $48 million to resolve allegations that Healthpoint caused false claims to be submitted to Medicare and Medicaid programs for a non-FDA approved skin ointment, Xenaderm.  The U.S. Department of Justice alleges that Healthpoint misrepresented Xenaderm’s regulatory status in its government reports and knowingly caused false claims to be submitted for the product.

The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties with knowledge of fraud to sue on behalf of the United States and share in any recovery.   This settlement is part of a series of recoveries totaling over $100 million from manufacturers of unapproved drugs.   The relator, or whistleblower, Ms. Constance Conrad, is eligible to recover 15% to 30% of the settlement, however, an agreement between the government and Ms. Conrand regarding her award has not been reached yet.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

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School Uniforms Found with Toxic Dye in China

February 18, 2013

UPI reports that a potentially cancer-causing dye was found in student uniforms for 21 schools in Shanghai, China.  The students, for the time being, may attend school in their regular clothes, while officials investigate the uniforms manufactured by the Shanghai Ouxia garment company.  A batch of the uniforms contains aromatic amine dyes, which are banned in China.

Many aromatic amines are known to the State of California to cause cancer, and appear on the Proposition 65 List of Chemicals.  Under Proposition 65, formally known as “The Safe Drinking Water and Toxic Enforcement Act of 1986,” no business may knowingly expose individuals in California to chemicals known to cause cancer or reproductive harm without first providing a health hazard warning.

The Chanler Group represents citizen enforcers who, acting in the public interest,  enforce each citizen’s right to know when they are exposed to toxic chemicals found in consumer products sold in California and who hold companies accountable for unwarned exposures through imposition of civil penalties and injunctive relief, often requiring the removal of the offensive chemicals. Clients of The Chanler Group have issued dozens of Proposition 65 notices to manufacturers and retailers regarding the presence of toxic chemicals in their products that are sold in California without a warning.

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