New York announces $2.4 million settlement in overcharging scheme / Company will reimburse hundreds of state and local government entities

Source: Larry Conley, American City and County, January 18, 2013

Nearly 1,000 New York government entities will receive a check for overcharges as part of a $2.4 million settlement with one of the nation’s largest medical waste disposal companies. Under the agreement, Stericycle, Inc., will fully reimburse New York police and fire departments, schools, hospitals, prisons and other entities for a scheme to charge automated price increases without notice and in violation of contract terms. … Government entities affected by the overcharges are located throughout New York. Some entities receiving the largest compensation include the WF Bruen Rescue Squad, Rensselaer, $26, 671.16; Albany Sheriff’s Correctional, $22,160.28; Broome Community College, Binghamton, $13,966.86; Clinton Correctional Facility, Dannemora, $21,094.35; and Cornell University College of Veterinary Medicine, Ithaca, $9,409.46. …
Related:
Lawsuit: Stericycle systematically overcharged governmental agencies
Source: Jeremy Carroll, Waste & Recycling News, January 8, 2013

Stericycle Inc. systematically overcharged governmental agencies throughout the country, including the federal government, a whistleblower lawsuit alleges. The suit, first filed in 2008 in Illinois, was unsealed Jan. 8. Former employee Jennifer Perez is named as a plaintiff, along with 14 states, the federal government and the District of Columbia. New York Attorney General Eric Schneiderman alluded to the lawsuit after he announced a $2.4 million settlement against the Lake Forest, Ill.-based medical waste giant Jan. 8. …

From the lawsuit:
Stericycle is a company that collects and disposes of medical waste throughout the United States. Stericycle has defrauded federal, state and local governments by knowingly or recklessly overcharging its governmental customers and by withholding accurate pricing data from its customers when it agrees to pick up medical waste. Stericycle tails to inform its customers that despite the contract price it has agreed to, Stericycle intends to and adds unallowable surcharges to each bill, in addition to an undisclosed 18% across the board increase every 9 months. Stericycle conceals its intent to add these increases to each bill because it knows governmental customers would never agree to them if disclosed in advance.