Prop 65 California

Amscan Holdings, Inc.; Amscan, Inc.; Party City Holdings, Inc.; Party City Corporation; Gags & Games, Inc.; Christy's

Notice Date: 
October 25, 2013
Alleged Harm: 
Birth Defects, (Other) Reproductive Harm
Plaintiff: 
Held
Defendant: 
Amscan Holdings, Inc.; Amscan, Inc.; Party City Holdings, Inc.; Party City Corporation; Gags & Games, Inc.; Christy's
Sub-Industry Code: 
Costumes
Designated For Use By: 
Adult/Child Use
Attached PDFs: 

Almar Sales Co., Inc.

Notice Date: 
October 25, 2013
Alleged Harm: 
Birth Defects, (Other) Reproductive Harm
Plaintiff: 
Held
Defendant: 
Almar Sales Co., Inc.
Sub-Industry Code: 
Costumes
Designated For Use By: 
Adult/Child Use
Attached PDFs: 

California Proposes Drinking Water Standard for Hexavalent Chromium

October 25, 2013
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The California Department of Public Health (CDPH) announced last month that it has proposed the nation’s first drinking water standard for hexavalent chromium (chromium-6).  The proposed Maximum Contaminant Level (MCL) of 10 parts per billion (ppb) is expected to be adopted following the public comment and review process.

The proposed regulations specifically limit the hexavalent form of chromium.  California’s current total chromium standard is 50 ppb, which includes both trivalent chromium (chromium-3) and hexavalent chromium (chromium-6).  Chromium-3 is an essential nutrient, while chromium-6 is a chemical known to the State of California to cause cancer.

California’s Office of Environmental Health Hazard has designed chromium-6 as a chemical known to the State of California to cause cancer and reproductive harm.  Under Proposition 65, companies offering products for sale in California that contain toxic chemicals (such as chromium-6) must first provide consumers with a health hazard warning.  The Chanler Group’s citizen enforcer clients have found chromium-6 in a number of consumer products, including power tools, tableware, and paints, without the required health hazard warning, and taken steps to enforce the law.

The Chanler Group represents citizen enforcers who, acting in the public interest, commence actions against businesses offering products for sale in California that contain chemicals known to cause cancer or reproductive harm without first providing the health hazard warning required by Proposition 65. Citizen enforcers bringing Proposition 65 actions in the public interest may obtain a Court Judgment imposing civil penalties, an injunction requiring reformulation of products, and/or provision of health hazard warnings. The Chanler Group has represented citizen enforcers of Proposition 65 for more than twenty years.

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The Chanler Group Holds Chinese Manufacturer Accountable for Toxic Chemical Violation

October 25, 2013

The Chanler Group (www.chanler.com), an environmental law firm, reached a settlement on behalf of its client, Peter Englander, with a Chinese manufacturer of products alleged to contain the reproductive toxin di(2-ethylhexyl)phthalate, commonly known as DEHP. Mr. Englander alleged that the foreign company, Hangzhou GreatStar Tool Company, violated California’s Proposition 65 by manufacturing and selling hand tools and stools containing DEHP through major retailers such as Lowe’s and Orchard Supply Hardware, without providing California consumers with the requisite health hazard warning.  The settlement was approved on Sept. 13, 2013.

“If a product is going to be sold in America, it has to meet American health and safety standards, both local and federal,” said Clifford Chanler, the founder and spokesperson of The Chanler Group. “This is true regardless of where the product is manufactured.”

As a result of the settlement, the overseas manufacturer has agreed that, no later than May 1, 2014, all of the products at issue, intended for sale to California consumers, shall be reformulated so as to virtually eliminate the presence of DEHP. Should Hangzhou GreatStar Tool Company accelerate its reformulation schedule and certify that the products at issue are reformulated by March 15, 2014, Mr. Englander agreed to waive a portion of the $30,000 civil fine. Seventy-five percent of the civil fine is paid to the State of California. The settlement can be reviewed at www.chanler.com/cases/archive/englander-v-hangzhou-greatstar-tool-co-ltd.

This is the first time Proposition 65, or any American consumer protection statute, has been used as a basis for international prosecution. The Chanler Group and its clients expect this to be the beginning of a new trend, where overseas manufacturers are held accountable for the products they provide for American consumers.

The Chanler Group represents citizen enforcers and whistleblowers to promote awareness of toxic chemicals found in our everyday environment and to enhance the health of the general public by advocating for the removal of chemicals known to cause cancer or reproductive harm from consumer products. For more information, please visit: www.chanler.com.

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Global Medical Direct to Settle Healthcare Fraud Claims for $7M

October 23, 2013

The owners of Global Medical Direct, LLC and Global Medical Inc., have agreed to pay $7 million to resolve allegations against them in connection with a scheme to submit false claims to the federal Medicare and Tricare healthcare programs, the United States Attorney’s Office announced yesterday. Global Medical, Inc. and its parent company, Global Medical Direct, LLC, are mail-order diabetic supply companies. 

The United States alleged that owners Robert Shea and Mark Franz caused Global Medical and Global Medical Direct to enter into numerous marketing contracts with insurance brokerage and other companies with customer bases likely to have a high percentage of diabetes patients and paid these companies based on the number of patients referred for diabetic supplies.  The Anti-Kickback Statute makes it unlawful to pay or receive remuneration for patient referrals because of the high potential for billing abuse to federal programs, such as Medicare, resulting from these types of arrangements. 

The companies have agreed to pay to the United States $5 million in proceeds from the sale of all of the companies’ assets to settle civil allegations under the False Claims Act.  Owners Shea and Franz will also receive twenty-year exclusions from participation in any federal healthcare program as part of the settlement. 

Under the False Claims Act, private parties with knowledge of fraud against the government may sue on behalf of the government and share in the recovery.  Had there been a whistleblower in this case, their portion of the settlement may have been anywhere from 15 to 30 percent.

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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TCG Client Vinocur Settles Flame Retardants in IKEA Changing Pads Case

October 22, 2013
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Laurence Vinocur, a client of The Chanler Group, and IKEA Holding US, Inc. and IKEA North America Services, LLC, reached a settlement this month, resolving Vinocur’s allegations that IKEA violated Proposition 65 by offering changing pads containing the flame retardant chemical (1,3-dichloro-2-propyl) phosphate (“TDCPP”) for sale in California without first providing the required health hazard warnings.  The changing pads are designed for use with infants.

California’s Office of Environmental Health Hazard Assessment (“OEHHA”) has designated TDCPP as a chemical known to cause cancer for purposes of Proposition 65.

As part of the settlement, IKEA will pay three civil penalties; the initial civil penalty totals $22,000, 75% of which will be paid to OEHHA, with the remaining 25% to be paid to whistleblower Vinocur.  IKEA also agreed to reformulate all changing pads that it offers for sale in California to contain no more than .0025% of TDCPP and other flame retardant chemicals TDBPP and TCEP.  On November 1, 2013, IKEA will pay a second civil penalty of $24,000.  However, if IKEA accelerates its reformulation schedule to achieve the .0025% TDCPP standard by September 30, 2013, Vinocur will waive the $24,000 second civil penalty in its entirety.  IKEA is responsible for paying a final civil penalty of $14,000 by February 1, 2014.  Yet should IKEA achieve a nationwide reformulation of its products by November 1, 2013, Vinocur will waive the final civil penalty of $14,000 in its entirety. This settlement structure provides an incentive to IKEA to promptly and completely reformulate its products to virtually eliminate TDCPP, or pay a much more substantial penalty.

IKEA is an international corporation that offers a variety of home and business furnishings for sale in 298 stores in 26 countries.  IKEA currently employs 139,000 staff around the globe. 

 The Chanler Group represents citizen enforcers who, acting in the public interest, commence actions against businesses offering products for sale in California that contain chemicals known to cause cancer or reproductive harm without first providing the health hazard warning required by Proposition 65.  Citizen enforcers bringing Proposition 65 actions in the public interest may obtain a Court Judgment imposing civil penalties, an injunction requiring reformulation of products, and/or provision of health hazard warnings.  The Chanler Group has represented citizen enforcers of Proposition 65 for more than twenty years.

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Kmart to Settle Fraud Claims For Over $2.5 M; Whistleblower to Get $310K

October 22, 2013

Kmart Corporation has agreed to pay the United States and 32 participating states a total of $2.5 million to settle allegations of false prescription claims by its national pharmacy centers to government health insurance programs, the Federal Bureau of Investigation announced yesterday.

Kmart allegedly violated the False Claims Act by billing government health care programs (Medicaid, Tricare and the Federal Employee Health Benefits Program) for all drugs included in a prescription when, for many prescriptions, it dispensed only a portion of the prescribed drugs. Although billed in full to the government health care programs, the remaining portion of the prescriptions were never dispensed to beneficiaries and were later returned to stock. 

The lawsuit was originally filed by Mark Kirsch, a former Kmart employee, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Kirsch will receive $309,687 as his portion 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 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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TCG Clients Issue 18 New 60-Day Notices

October 18, 2013

TCG clients Anthony Held, Peter Englander, and Laurence Vinocur served 18 new 60-Day Notices of Violation of Proposition 65 today. The notices were served to companies offering products such as furniture, tote bags and dried seaweed for sale in California containing chemicals known to cause cancer or reproductive harm, without the required health hazard warning. Our clients allege that the companies' products contain the phthalate DEHP, the flame retardant TDCPP, the heavy metal arsenic (As). DEHP is known to cause birth defects and reproductive harm, while TDCPP and arsenic are known to cause cancer. Some of the noticed companies include Kimberly-Clark Corporation, John Wiley & Sons, and Snap-On Inc.

See below for a partial list of Notices.

Product Chemical Alleged Violator Citizen Enforcer
Chairs with Vinyl/PVC Upholstery containing DEHP DEHP Drew Industries Incorporated; Lippert Components, Inc.; Seating Technology, Inc. Held
Vinyl/PVC Aprons DEHP Houston's, Inc. Held
Vinyl/PVC Totes/Caddies DEHP Impact Products, LLC Held
Books with Vinyl/PVC Covers DEHP John Wiley & Sons, Inc. Held
Hearing Protection with Vinyl/PVC Components DEHP Kimberly-Clark Corporation; Jackson Safety, LLC Held
Benches with Vinyl/PVC Upholstery containing DEHP DEHP Sam Ash Music Corporation; Samson Technologies Corp. Held
Dried Seaweed ARSENIC Eden Foods, Inc. Held
Dried Seaweed ARSENIC JFC International Inc. Held
Dried Seaweed ARSENIC Jinon Corporation Held
Dried Seaweed ARSENIC Mitsui & Co. (U.S.A.), Ltd.; Mitsuwa Corporation Held
Dried Seaweed ARSENIC Nishimoto Trading Co., Ltd. Held
       
Stools with Foam Padding containing TDCPP; Stools with Vinyl/PVC Upholstery containing DEHP TDCPP; DEHP GF Health Products, Inc. Englander
Tile Cutter Hand Grips;
Hand Tools with Vinyl/PVC Grips
DEHP Q.E.P. Co., Inc. Englander
Vinyl/PVC Pouches; Stools with Vinyl/PVC Upholstery containing DEHP DEHP Snap-On Incorporated Held

 

Read the most recent notices issued by clients of The Chanler Group

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Cixi Xingjian Laminate Fabric Co., LTD

Notice Date: 
October 18, 2013
Alleged Harm: 
Cancer
Plaintiff: 
Vinocur
Defendant: 
Cixi Xingjian Laminate Fabric Co., LTD
Sub-Industry Code: 
Infant Care
Safety Products
Designated For Use By: 
Adult/Child Use
Attached PDFs: 

Snap-On Incorporated

Notice Date: 
October 18, 2013
Alleged Harm: 
Birth Defects, (Other) Reproductive Harm
Plaintiff: 
Held
Defendant: 
Snap-On Incorporated
Sub-Industry Code: 
Residential Furniture
Bags & Accessories
Designated For Use By: 
Adult/Child Use
Attached PDFs: 
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