by Long Island Attorney Paul A. Lauto, Esq.

Walmart has settled 23 of the cases emanating from the 2011 listeria cantaloupe outbreak, that allegedly killed 33 people and sickened many more.  Although many related cases remain unsettled, Walmart issued a statement maintaining that the company is "Committed to our customers' safety and we take food safety concerns like this very seriously."

The 2011 listeria cantaloupe contamination was traced to Jensen Farms in Colorado.  The Jensen brothers, after pleading guilty to introducing adulterated food into interstate commerce, were sentenced to probation, home detention and community service.  In addition, each brother was ordered to pay $150,000 in restitution.  Jensen Farms was compelled to file for Bankruptcy within one year of the contamination.

Reportedly, the contamination problem stemmed from dirty water on the floor of the Jensen Farm's facility and old unclean equipment.  Notwithstanding, it is stated that upon inspection one week prior to the discovery of the first victim, the facility received a "Superior Rating."

These cases bring to light, the fact that we have a food system in our country that has failed on many levels from A to Z or from seed to sale.  Clearly the FDA and the USDA are overwhelmed, understaffed and under funded.  Perhaps that is why the FDA continues to allow the irradiation of more and more of our foods.  But, as detailed in our April 15, 2014 blog, assaulting our foods with radiation only addresses the symptom and not the cause of the problem. 

Big companies such as Walmart, need to heighten their selectivity of food suppliers and be guided more by quality than price.  In addition, there is a serious need for increased qualitative inspections in the growth, manufacturing, processing, delivery and sale of our foods.  Although the affordability of the necessary changes is an issue, that is understandably no concern of the victims' families.  For there is no amount of money, that is truly compensatory for the loss of a loved one.

Long Island Lawyer
Paul A. Lauto, Esq.
www.liattorney.com

by Long Island Attorney Paul A. Lauto, Esq.

"Say it ain't so Joe," but alas even Trader Joe's was faced with a class action law suit claiming false and misleading use of "All Natural" and "100% Natural" labels on food products.  The suit claimed that Trader Joe's charged a premium on food products falsely labeled "All Natural" and "100% Natural," as they contained synthetic and artificial ingredients such as xanthan gum.  

A Federal Court Judge has preliminarily approved a settlement for approximately $3.4 million dollars, with final approval scheduled for a July hearing.  The money set aside is in part to be used to reimburse customers with and without receipts for the offending food products, including a variety of cookies, juice, rolls, cheese and more.

This case represents the mere tip of the "All Natural" litigation ice berg, which has been allowed to form courtesy of the FDA and their refusal to define the word "Natural."  The bottom line is that the food industry is big business and food stores are in that business to make money.  The FDA is suppose to safeguard consumers against the malevolence of big business, but as many believe, that is like asking the fox to watch the hen house.  

We need a governmental food agency that actually does their purported job of protecting American consumers.  The best way to effectuate change is through a massive grass roots movement by the people.  If people in every state complain to their Senators, Congressmen and Governors about the real need to eliminate the FDA and establish a new governmental food agency free of outside influence, all things are possible.  When politicians are convinced that the people demand a change and that their political careers depend upon it, we will succeed in getting the wolves to turn upon themselves.  

If you believe it is time to do away with the FDA and replace it with a food only governmental agency that truly protects the American consumer, then take a first proactive step by signing a petition to do so at www.change.org/petitions/kathleen-sebelius-u-s-secretary-of-health-and-human-services-do-away-with-the-fda-and-replace-it-with-a-new-food-only-governmental-agency-that-truly-protects-consumers?recruiter=82663938&utm_source=share_petition&utm_medium=email&utm
_campaigh=petition_invitation.  Together we can make a better tomorrow.

Long Island Lawyer
Paul A. Lauto, Esq.
www.liattorney.com

by Long Island Attorney Paul A. Lauto, Esq.

The Humane Society of the United States (HSUS) has exposed the Westland Meat Co., one of the nation's leading suppliers of the school lunch program, for the illegal slaughter and sale of sick and downer cattle.  The USDA forbids the sale of sick or downer cattle, because they exhibit a higher rate of bovine spongiform encephalopathy (BSE) or mad cow disease.  The HSUS revelation, resulted in the largest BSE related beef recall in U.S. history.  The USDA failed to detect this illegal activity notwithstanding having a reported 8 on site inspectors.

The HSUS brought a False Claim Act (FCA) suit against Westland Meat Co., reportedly resulting in a treble damages judgment of approximately 500 million.  A settlement agreement reduced the now bankrupt company's liability to approximately 155 million, of which approximately 3 million will be paid out of most of the remaining assets of the company's owners and investors.  

The HSUS substantiated the illegal acts with the below undercover video, showing slaughterhouse employees beating and dragging ill and downer cattle to the slaughter.  Please be advised that the below video is graphic in nature and is for mature audiences only.  Once again a governmental agency designed to protect our families and children, has failed to fulfill its purpose.  Thankfully, in this one case, we had the HSUS to do the job of the USDA.

Long Island Lawyer
Paul A. Lauto, Esq.

by Long Island Attorney Paul A. Lauto, Esq.

The Department of Justice (DOJ) has announced that pharmaceutical giant Johnson & Johnson, has agreed to pay 2.2 billion dollars to settle criminal and civil healthcare fraud claims against them.  The DOJ revealed  that Johnson & Johnson allegedly marketed prescription drugs as safe and effective, for uses that the drugs were never approved for.  These drugs included Risperdal (antipsychotic medication), Invega (antipsychotic medication) and Natrecor (heart medication).  In addition, were claims that Johnson & Johnson gave kick-backs to physicians and pharmacies for prescribing and promoting these drugs.

US Attorney General Eric Holder stated that the alleged conduct of Johnson & Johnson displayed a "reckless indifference to the safety of the American people."  The settlement included payment of 1.72 billion dollars for federal and state civil claims and 485 million dollars in criminal fines and forfeiture.  This landmark payout, is one of the largest healthcare fraud settlements in United States history.

Although 2.2 billion dollars is undoubtedly an enormous amount of money, it is a mere fraction of what Big Pharma makes at both the financial and health expense of the American people.  If the allegations are true, then this settlement represents a travesty and the DOJ did a disservice to the people by not pursuing all criminal and civil claims to the full extent of the law.  The power wielded by Big Pharma in America is arguably second to none.  This settlement is a cold reminder that America is no longer a country governed for the people and by the people, as our forefathers intended.

Long Island Lawyer
Paul A. Lauto, Esq. 

by Long Island Attorney Paul A. Lauto, Esq.

The Federal Trade Commision (FTC) announced that Kellogs has agreed to settle a false advertising class action lawsuit for 4 million dollars.  The settlement provides for, among other things, reimbursement of $5 per box of cereal and up to $45 for class members with proof of purchase.

The suit emanated from advertising claims that a study showed that kids who eat Frosted Mini Wheats for breakfast, were up to 20% more attentive in class than those kids who did not eat breakfast.  See Kellog's television commercial below.  FTC Chairman Jon Leibowitz in discussing the importance of the suit, stated that, "We tell consumers that they should deal with trusted national brands... So it's especially important that America's leading companies are more attentive to the truthfulness of their ads and don't exaggerate the results of tests or research."  Kellogs responded by citing its self-proclaimed long history of responsible advertising and by denying any wrongdoing.  In Kellog's official statement, they defiantly stated, "We stand behind the validity of our clinical study yet have adjusted our communication to incorporate FTC's guidance."

Although as part of the settlement, Kellogs made a covenant to refrain for a period of 3 years from making claims as to cognitive development in children, it is apparent that consumers must be wary of advertised product claims.  The doctrine of "Caveat Emptor" or buyer beware, is perhaps more important today than ever.  Remember that in this great country of ours, big business still means big money.

Long Island Lawyer
Paul A. Lauto, Esq.

by Long Island Attorney Paul A. Lauto, Esq.

A Long Island man, Thomas Arnold, detected a malfunction in his swimming pool pump, recently installed at his East Yaphank home by Swim King Pools.  Arnold called Swim King pools and advised them of the defect and that the pump's sandy filter media was being expelled into the pool.  A representative reportedly advised him to tighten one of the pump's clamps to remedy the problem.  Upon doing so and after reactivating the pump, the pump's lid allegedly blasted off striking Arnold in the face.  Arnold sued, among others, Swim King Pools claiming negligent installation of the pump and negligence in failing to properly instruct him on how to fix the pump.  

Plaintiff sustained a laceration to his face, extending from his forehead down across his nose and right cheek, with claimed significant residual scarring.  Plaintiff further maintained that he sustained brain damage with resultant persistent vertigo, headaches and impaired balance. 

Defendant maintained that they were not negligent, in that proper maintenance was exlplained upon installation of the pool.  Further, that all purchasers receive a manual explaining how to deactivate and reactivate the pump.  As to plaintiff's injuries, defendant denied the existence of brain injury and maintained that plaintiff's scar healed well. 

The parties negotiated a pre-trial settlement in the amount of $150,000.

Long Island Lawyer
Paul A. Lauto, Esq.

by Long Island Attorney Paul A. Lauto, Esq.

A 2 year old boy was scalded by a shower head in a bathroom apartment, allegedly due to a defectively installed temperature regulating valve.  Plaintiff alleged that the defective shower head, was such that it would unexpectedly disperse hot streams of water at up to 160 degrees Fahrenheit. 

The boy sustained second and third degree burns to his back and buttocks that required skin grafting and left significant residual scarring.  Plaintiff's medical expert stated that although the residual scars could be diminished, it would require between 5 and 17 surgeries to do so.   The defense's medical expert stated that the scars could not be diminished by any procedure.

The plaintiff and defendants including the residence's owner, the residence's managing agent and the plumbing company that installed the valve, agreed to a pre-trial settlement in the total amount of 4 million dollars.

Long Island Lawyer
Paul A. Lauto, Esq.

by Long Island Attorney Paul A. Lauto, Esq.

In March 2012 Yahoo filed a lawsuit against Facebook alleging infringement of 10 of its patents related to advertising, privacy, customization, messaging and social networking.  Facebook counterclaimed alleging patent infringement by Yahoo.

All claims have been settled with no money transferring hands.  The settlement agreement includes a new "advertising partnership" between the two mega companies.  Yahoo's decision to bring suit against Facebook, was the unpopular brain trust of former CEO Scott Thompson.  Thompson lasted only four months on the job and was replaced in May 2012, as a result of his embellished resume.

Long Island Lawyer
Paul A. Lauto, Esq.

by Long Island Attorney Paul A. Lauto, Esq.

Wells Fargo Bank allegedly discriminated against minority borrowers in violation of the fair lending laws from 2004 to 2009.  The claimed result was approximately 34,000 borrowers paying higher interest rates on loans based on the color of their skin.

The Justice Department announced that Wells Fargo has agreed to settle the matter for approximately 175 million dollars.  A total of 125 million will be paid in compensation to the alleged discriminated borrowers.  In addition,  25 million will be paid as down payment aid to borrowers in areas claimed to have been heavily discriminated against, such as New York City.  This settlement is the second largest of its kind on record.

Long Island Lawyer
Paul A. Lauto, Esq.