Week Adjourned: 8.17.12 – Jones Lang Lasalle, Doctor Discounts, Avaulta Mesh

The weekly wrap of top class action lawsuits and settlements for the week ending August 17, 2012.

Top Class Actions

More unpaid overtime lawsuits this week – and top of the pile is a potential class action lawsuit filed against commercial real estate brokerage giant Jones Lang Lasalle.

The unpaid overtime class action lawsuit was filed by maintenance worker and lead plaintiff Larry Jackson who alleges he was incorrectly classified as exempt from overtime. In January, Jones Lang Lasalle allegedly reclassified its maintenance workers from salary to hourly employees, according to a lawsuit. Jackson claims that as a result, the refuses to pay him overtime after 40 hours a week.

“Since plaintiff has been re-classified, there have been multiple instances where he has not been paid for all of his overtime hours,” the lawsuit states. “Plaintiff’s manager has either doctored his time card to show that plaintiff only worked 40 hours or outright refused to pay plaintiff for his overtime hours.”

Jackson seeks actual and punitive damages for violations of the Fair Labor Standards Act. He is represented by J. Derek Braziel with Lee Braziel in Dallas.

Top Settlements

It’s settled but not over… for Christine Scott, who was awarded $5.5 in settlement of her Avaulta lawsuit. Scott filed the lawsuit against C.R. Bard over a transvaginal mesh implantation.

Scott, just 53, claims the problems stem from the Bard Avaulta mesh implant she was provided with in 2008 to treat occasional urinary incontinence. The TVM lawsuit alleged Scott now suffers from chronic pain and can no longer enjoy intercourse with her husband as a result of a transvaginal mesh implant. The case is Scott v. Kannappan, S-1500-CV-266034-WDE, Superior Court for Kern County, California (Bakersfield).

Scott was given the Avaulta Plus Biosynthetic Support System, a product C.R. Bard no longer sells in the US. It remains available elsewhere in the world. Scott launched her Avaulta lawsuit in January 2009 upon learning the previous October that the US Food and Drug Administration (FDA) had issued a warning to doctors pertaining to “rare” but “serious” complications originating with the mesh in some patients.

Scott testified that for five months she could only urinate with a catheter. It has also been discovered the mesh has eroded within her body, breaking apart and becoming intertwined with her organs and surrounding tissue. The mesh is causing ongoing internal lacerations, infection and abscesses.

The Bard mesh is also protruding through and into her vagina, making intercourse impossible. And because the mesh has become so intertwined with her vital pelvic organs and other tissue, it can never be safely removed.

The problems with Bard Avaulta have resulted in eight subsequent surgeries and nine additional procedures related to the internal damage wrought by the mesh product. The experience has also resulted in the need for ongoing psychiatric care. At trial, her psychologist testified the plaintiff would require ongoing therapy for the remainder of her life.

Doctor discount program? In what parallel universe does that happen? Certainly not ours, is the answer the courts handed down this week. Final approval of a consumer fraud class action settlement in Smith, et al v. Collinsworth, et al. has been obtained on behalf of approximately 48,000 consumers who were sold a limited benefit health insurance policy and a membership in a doctor discount program marketed as providing coverage that was as good or better than major medical, but who found out otherwise when they got sick and were saddled with large unpaid bills.

According to the Circuit Court of Saline County Arkansas, which approved the settlement, “the value of the settlement exceeds $40 million,” plus it “provides … injunctive relief designed to address the gravamen of the claims at issue in this Action.” The doctor discount program lawsuit has been in progress for seven years.

The lawsuit alleged that the health insurer and the doctor discount network, through their shared sales force, misrepresented the combination of a limited benefits health insurance policy and the doctor discount program as providing coverage that was equal to or better than major medical policies issued by companies such as Blue Cross Blue Shield. In fact the combination of products provided only a fraction of what would have been paid by major medical policy and left class members with crippling bills. The litigation class was certified in September 2009 by the Circuit Court of Saline County, Arkansas, and class certification was affirmed by the Arkansas Supreme Court in December 2010 in United Am. Ins. v. Smith (see 2010 Ark. 468 (2010)).

Ok – that’s it for this week – see you at the pool bar!