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Case ID: 2750 | Drugs / Medical | 01/05/2005
A class action has been filed against biotechnology business MedQuest Associates, Inc. on behalf of Georgia patients who allege that the company makes exclusive deals with doctors to induce the doctors to refer their patients to MedQuest imaging centers in violation of state insurance law. The action seeks unspecified damages.
Named plaintiff Steven Blanton allegedly received care at a MedQuest imaging center in Hapeville, Georgia, in 2002. He alleges that MedQuest charged his physician's office $450 for his treatment, while the physician's office charged his insurer $950. The action alleges that the scheme was set up so that the doctor pocketed the difference as an inducement to refer other patients in the future. The arrangement is allegedly part of an exclusive deal MedQuest has with a number of physicians. The action alleges that arrangements of this sort will ultimately cost patients in the form of higher medical insurance premiums since the insurance company is having to pay an artificially inflated price on behalf of its policyholders. MedQuest provides magnetic resonance imaging, computed tomography, nuclear medicine, fluoroscopy, x-ray, ultrasound, mammography and bone densitometry services to the medical industry. In January 2003, MedQuest was called before Georgia's Composite State Board of Medical Examiners to respond to allegations that the company violated state patient referral laws through one of its physician agreements. No action has been taken to date.
At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Drugs / Medical Cases of Interest Several class actions have been filed against hospice operator Odyssey Healthcare, Inc. (Nasdaq:ODSY) and certain of its officers and directors by stockholders who purchased the company's common stock between May 5, 2003, and February 23, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. Beverly Enterprises Inc. played hardball in two Arkansas courthouses, withholding and losing patient records and other information. One judge has threatened jail time for the company’s chief executive, and another judge granted a default judgment against the company for operating a "shell game."
GlaxoSmithKline and the FDA notified physicians of changes to the pregnancy/precautions section of the prescribing information for Paxil and Paxil CR Controlled-Release Tablets. Glaxo's studies suggest Paxil may be more likely to be linked to birth defects than similar drugs. The parties have reached a $219,000 settlement in an FTC administrative proceeding filed against nutritional supplement marketer Pinnacle Marketing, LLC, on behalf of all persons who purchased Ultra Carb dietary supplement for weight loss. The action alleged that the marketers made deceptive advertising claims about Ultra Carb in violation of federal consumer protection laws. Persons eligible to take part in the settlement should contact the prosecuting attorneys for more information. Kahn Gauthier Swick is investigating possible legal actions against Biogen Idec and Elan because of two adverse events reported with the use of Tysabri (Natalizumab). Tysabri is used to treat MS (multiple sclerosis). The FDA received reports of one confirmed death and one possible case of progressive multifocal leukoencephalopathy (PML) in patients taking Tysabri. A class action has been filed against pharmaceutical manufacturer Pfizer, Inc., Parke-Davis, and Warner-Lambert Company on behalf of persons who paid out-of-pocket expenses for the drug Neurontin (gabapentin), who allege that the companies harmed consumers, by conspiring to circumvent drug approval regulations set up by the U.S. Food and Drug Administration (FDA), and promoting scientifically unproven "off-label" use of the drug, in violation of the federal Racketeer Influenced and Corrupt Organizations Act. |
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