Date: January 8, 2013
Source: News Room
A whistleblower lawsuit alleges that medical waste management firm Stericycle Inc (Lake Forest, IL) systematically overcharged state and federal agencies for services over a period of several years. The suit came to light when New York Attorney General Eric Schneiderman alluded to it as he announced a $2.4 million settlement between his state and Stericycle on January 8. The New York settlement resolves the state's claim that Stericycle engaged in a plan, dating back to 2003, to over-charge public entities such as schools, hospitals, and police and fire departments in New York. The federal lawsuit claims that the company improperly added fuel and energy surcharges to monthly bills of fixed-price agreements to government agencies. "These fuel and energy surcharges bear no relationship to actual increases in the cost of fuel and energy borne by Stericycle," the lawsuit alleges. Former employee Jennifer Perez is named as a plaintiff, along with 14 states, the federal government and the District of Columbia. So far, Stericycle has not responded to reporters' inquiries about the lawsuit.
PRESS RELEASE
January 8, 2013
A.G. Schneiderman Announces $2.4 Million Settlement with Stericycle For Overcharging NY State And Local Entities
Medical Waste Disposal Company Profited From Improper Price Increases
Whistleblower Recovery In Taxpayer Protection Case Under Enhanced False Claims Act
Schneiderman: Corporations That Profit From Overcharging New York Taxpayers Will Be Held Accountable
NEW YORK - Attorney General Eric T. Schneiderman announced today a $2.4 million settlement with one of the nation's largest medical waste disposal companies, Stericycle, Inc., for improperly overcharging nearly 1,000 New York government entities, including police and fire departments, rescue squads, schools, jails, and hospitals all over the state. Since 2003, Stericycle implemented a plan to charge automated price increases (APIs) without giving any notice to these customers and in violation of the contract terms.
As a result of the Attorney General's settlement, every impacted government entity will receive a check from Stericycle covering 100% of the overcharged amount, over $820,000 in all. In addition, under the agreement, Stericycle will permanently discontinue APIs to the New York Government Customers covered by the settlement and provide notice and opportunity to opt-out before any future rate increases of any kind.
"Stericycle improperly profited by overcharging New York taxpayers," said Attorney General Schneiderman. "In these times of harsh budget cuts to education, public health, and public safety, local governments and agencies need every available dollar and we will hold accountable corporations like Stericycle that use cynical schemes to rip off New York taxpayers."
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