Violation Tracker Adds Major Cases Involving Healthcare, Transportation and More

March 1, 2023

The latest update to Violation Tracker adds 1,350 new federal and state cases in a variety of categories. These include government contracting fraud (False Claims Act), employment discrimination, wage theft, consumer protection violations, and more. The penalties paid in these cases exceed $1 billion. Recently completed class action lawsuits add another $350 million to the total.

The companies involved in these cases operate in numerous industries, but three sectors stand out in the largest recent cases: healthcare, transportation, and food production.

Centene Corporation agreed to settlements with attorneys general in three states for overcharging their Medicaid programs for pharmacy services: California ($215 million), Indiana ($66.5 million), and Iowa ($44.4 million). LabCorp agreed to pay $19 million to the U.S. Justice Department to resolve allegations that it overcharged Medicare.

Volvo Group North America was penalized $130 million by the National Highway Traffic Safety Administration for noncompliance with recall and reporting requirements under the Vehicle Safety Act. Toyota Motor Credit Corporation failed to provide post-repossession information to consumers and will pay $7.6 million for its illegal auto loan collection practices, including $5.5 million in debt relief to affected borrowers. Genesee & Wyoming Railroad Services settled with the EPA and the Department of Justice for violation of Clean Air Act regulations. The company has agreed to a $1.35 million civil penalty and will spend $42 million to comply with environmental regulations.

Kerry Inc., a food and ingredient manufacturer, pled guilty to a misdemeanor count of distributing cereal contaminated with Salmonella. It has agreed to pay a criminal fine and forfeiture amounting to $19 million – the largest-ever criminal penalty in a food safety case.

One other notable case was against the Church of Jesus Christ of Latter-day Saints and Ensign Peak, its investment management company, for failing to accurately disclose the Church’s equity investments. Ensign Peak, with the consent of the Church, obscured its involvement in investment decisions to hide the steep surge in the portfolio. Ensign Peak and the Church have agreed to pay a $4 million and $1 million penalty, respectively.

With the update, Violation Tracker now contains more than 548,000 entries dating back to the beginning of 2000. Total monetary penalties amount to $863 billion.