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Va., localities will receive $2m in settlement with Stericycle

28th October 2015

As part of a multistate settlement, Virginia and affected localities will receive more than $2 million to resolve claims that an Illinois-based medical waste disposal company defrauded numerous state and local agencies by imposing improper fuel charges.

Virginia’s participation in the total $26.75 million settlement with Stericycle Inc. stems from allegations that the company overcharged government entities by millions of dollars and violated the Virginia Fraud Against Taxpayers Act and the false claims laws of 11 other states, the District of Columbia and the federal government.

“Virginia taxpayers expect companies to play by the rules, and Stericycle violated their trust and the trust of more than 200 local and state entities in Virginia,” said Attorney General Mark R. Herring. “We will continue to work tirelessly for Virginia consumers to ensure that companies cannot profit off of taxpayer dollars through improper business tactics in the commonwealth.”

Affected localities in Virginia will be notified in the coming weeks.

The lawsuit alleged that Stericycle violated state and federal false-claims laws by overcharging government customers by adding fuel and energy surcharges that did not reflect actual increases in fuel and energy costs. According to the lawsuit, these increases — amounting to 18 percent every nine months — violated prices set by contracts.

California, Delaware, the District of Columbia, Florida, Illinois, Indiana, Massachusetts, Nevada, New Jersey, North Carolina, Rhode Island, Tennessee and the federal government will receive portions of the settlement, in addition to Virginia.

Assistant Attorney General Peter E. Broadbent III represented Virginia in this matter.

Posted in Uncategorised by securedmedwaste

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