Matco Tools Settles California Misclassification Lawsuit for $15.8 MillionSan Francisco, CA On April 29, the Northern District of California granted final approval to a $15.8 million settlement in a class action California labor lawsuit brought by 273 franchisees who claimed that Matco Tools classified them as independent contractors to avoid paying overtime, reimbursing expenses and providing accurate wage statements. The deal includes a $13.5 million cash payment. Distributors who terminated their distributorships on or before September 8, 2021, may also share in a fund that provides $2.3 million in debt relief.
Kickback Scheme Spawns Humira Whistleblower Lawsuit and Investor BacklashWilmington, DE On May 17, an investor sued AbbVie, alleging that the manufacturer of Humira defrauded investors by permitting the company to engage in an illegal “kickback scheme” that caused the value of the stock to plummet. The shareholder derivative lawsuit arises from a number of whistleblower lawsuits, including one filed in California in 2018. These brought to light AbbVie’s scheme to induce doctors to prescribe Humira by showering them with cash, meals, drinks, gifts, trips, patient referrals and the services of nurse “ambassadors.”
Ranney v. Gonzalez is just the latest fallout from AbbVie’s controversial “white coat marketing” efforts.
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