$90 Billion Whistleblower Suit Filed Against Four of the Nation's Largest Chemical Companies

BASF Corporation, Bayer Material Science LLC, Dow Chemical Company and Huntsman International LLC have been named in a False Claims Act (FCA) lawsuit brought by New York law firm Kasowitz, Benson, Torres & Friedman LLP on behalf of the U.S. government.

EcoWatch learned that the recently unsealed whistleblower lawsuit was served on the chemical companies on Wednesday. The lawsuit was originally filed under seal in federal court in Northern California.

Kasowitz brought this action on behalf of itself and the federal government to recover more than $90 billion in damages and penalties under the FCA, which imposes penalties for concealing obligations to the government. read more »

North American Health Care Inc. to Pay $28.5 Million to Settle Claims for Medically Unnecessary Rehabilitation Therapy Services

Chairman of the Board and Senior Vice President of Reimbursement Analysis to Pay an Additional $1.5 Million

North American Health Care Inc. (NAHC), its chairman of the board, John Sorenson, and its senior vice president of Reimbursement Analysis, Margaret Gelvezon, have agreed to pay a total of $30 million to resolve allegations that they violated the False Claims Act by causing the submission of false claims to government health care programs for medically unnecessary rehabilitation therapy services provided to residents at NAHC’s skilled nursing facilities (SNFs), the Department of Justice announced today.  Under the settlement agreement, NAHC has agreed to pay $28.5 million. Mr. Sorensen has agreed to pay $1 million and Ms. Gelvezon has agreed to pay $500,000. read more »

Ernst & Young, Former Partners Charged With Violating Auditor Independence Rules

First SEC Enforcement Actions for Auditor Independence Failures Due to Close Personal Relationships

The Securities and Exchange Commission today announced that public accounting firm Ernst & Young has agreed to pay $9.3 million to settle charges that two of the firm’s audit partners got too close to their clients on a personal level and violated rules that ensure firms maintain their objectivity and impartiality during audits. read more »

What happens when the systems we rely on go haywire?

On May 6, 2010, around 2:30 p.m. Eastern time, key US equity indices plummeted for no apparent reason. The chaos in the indices initiated a tsunami that quickly began to wash over other markets. Stocks of formerly robust, mainstream companies began to trade at absurd prices. A share of Accenture, just minutes before trading at $40, could be had for a penny. A share of Apple shot from $250 to $100,000.

The event, which lasted for about a half hour, is now known as the flash crash. read more »