Jun 4, 2018 | Consumer Protection, Employment & Technology Archive
Kehoe Law Firm, P.C. is making consumers aware that on May 29, 2018, a class action complaint was filed against Transworld Systems, Inc. for “. . . negligently, knowingly, and/or willfully placed calls using an artificial and/or prerecorded voice to Plaintiff’s cellular phone in violation of the Telephone Consumer Protection Act, 47 U.S.C. § 227, et seq. (the “TCPA”).”
According to the class action complaint, Transworld, “one of the country’s largest debt collectors,” which “touts that it services a portfolio of more than $25 billion and that 2.3 million accounts are placed with it annually,” allegedly, “operates an aggressive contact schedule which bombards unsuspecting consumers, with whom it has no relationship, with calls using a prerecorded and/or artificial voice.” Further, the complaint alleges that Transworld, was not attempting to collect a debt from the Plaintiff, but rather “bombarded his cellular telephone with prerecorded and artificial voice calls made without his consent and over his explicit objection.” Allegedly, Transworld repeatedly called Plaintiff’s cell phone from (779) 970-2672, (779) 970-2620, and (779) 970-2724 utilizing a prerecorded and/or artificial voice regarding a woman unknown to the Plaintiff. In April 2018, the Plaintiff contacted Transworld, furnished his cell phone number, and requested Transworld to stop calling his cell phone. Transworld, according to the complaint, told the Plaintiff that it could not locate the phone calls made to the Plaintiff’s and, subsequently, continued to place calls to the Plaintiff’s cell phone.
The TCPA class action seeks, among other relief, statutory damages and was filed in United States District Court, Central District of California (2:18-cv-04698).
Do You Believe You Are a Victim of Illegal Robocalls, Text Messages, “Junk” Faxes or Telemarketing Sales Calls?
If you have received illegal robocalls, text messages, “junk” faxes or telemarketing sales calls, you may be able to recover at least $500 for each illegal call, text or fax you received and, possibly, as much as $1,500 for each illegal call, text message or facsimile that was made either willfully or knowingly in violation of the TCPA.
To help evaluate your potential legal claims under the Telephone Consumer Protection Act, please complete KLF’s confidential Robocall Questionnaire or, if you prefer to speak with an attorney, please complete the form above on the right, e-mail [email protected] or contact Michael Yarnoff, Esq., [email protected], (215) 792-6676, Ext. 804, for a free, no-obligation evaluation of your potential legal rights.
May 31, 2018 | Shareholder & Investor Protection
The SEC’s Office of Investor Education and Advocacy and Retail Strategy Task Force Warn Investors About Red Flags that a Broker May Be Running a Side Business Offering Investments Not Approved for Sale Through the Broker’s Firm
The SEC advises investors to always check the registration status and background of anyone recommending or selling an investment. Click here to research your investment professional.
Importantly, even if you are investing with a registered broker that you have known for years, make sure that your investments are approved for sale through the broker’s firm.
Ask your broker for an explanation and follow up with the firm’s compliance department if you encounter any of these potential red flags:
Your broker asks you to make out a check, or to wire money, to any person or to a different firm;
Your broker tries to sell you an investment without any paperwork about the investment;
Investments or deposits you made through your broker do not appear on your account statement from the firm; or
You receive an account statement that does not appear to be from the firm.
Investors: Use caution if your broker asks you to sign a letter that you consent to an investment that is not purchased through the firm. If you believe a broker is offering investments that may not be approved for sale through the firm, or to report other problems with a broker, submit a complaint to the firm and to the SEC or FINRA. Anytime you invest through a broker, confirm that the broker is registered and look out for signs that may indicate your investments are not being made through the broker’s firm.
SEC Charges Investment Professional in $8 Million Scam Targeting Long-Term Brokerage Customers
According to the SEC’s complaint, Steven Pagartanis (“Pagartanis”), who was affiliated with a registered broker-dealer, told some investors – including retirees who had been Pagartanis’s customers for many years – that he would invest their funds in either a publicly-traded or private land development company. He promised that the funds would be safe and also promised guaranteed monthly interest payments on the investments. At Pagartanis’s direction, his investors wrote checks payable to a similarly-named entity that was secretly controlled by Pagartanis. In all, the customers invested approximately $8 million, which Pagartanis used to pay personal expenses and make the guaranteed “interest” payments to his customers. To conceal the scam, which unraveled earlier this year when Pagartanis stopped making the so-called interest payments to customers, Pagartanis created fictitious account statements reflecting ownership interests in the land development companies.
The Suffolk County District Attorney’s Office has filed criminal charges against Pagartanis. The SEC’s complaint, filed in United States District Court, Eastern District of New York, charges Pagartanis with violating the antifraud provisions of the federal securities laws. The SEC is seeking a judgment ordering Pagartanis to disgorge his allegedly ill-gotten gains plus prejudgment interest, and to pay financial penalties.
Marc P. Berger, Director of the SEC’s New York Regional Office, said, “Regardless of how long investors have worked with their brokers, they should always confirm that recommended investments are approved for sale by their brokerage firm before transferring funds.”
Investors: The SEC’s enforcement action is an important cautionary reminder to be aware that even if you are investing through a broker you have known for years, you should be cautious if your broker asks you to make out a check or to wire money to an individual or to a different firm.
Source: SEC.gov and Investor.gov.
May 29, 2018 | Consumer Protection, Employment & Technology Archive
Kehoe Law Firm, P.C. is making consumers aware that on May 24, 2018, a class action complaint was filed against Citibank, N.A. “. . . seeking damages and any other available legal or equitable remedies resulting from the illegal actions of CITIBANK, N.A. . . . in negligently, knowingly, and/or willfully contacting Plaintiff on Plaintiff’s cellular telephone in violation of the Telephone Consumer Protection Act, 47. U.S.C. § 227 et seq. (“TCPA”), thereby invading Plaintiff’s privacy and causing him to incur unwanted and unnecessary charges.”
According to the class action complaint, in or around September 2017, Citibank placed multiple calls to Plaintiff’s cellular telephone from, among other numbers, (800) 950-5114, in connection with the collection of a debt not owed by the Plaintiff. When the Plaintiff answered his cell phone, he heard a robotic voice which told him to push a button to be connected. At least once, when the Plaintiff answered Citibank’s debt collection call, he, allegedly, told a Citibank agent that Citibank was calling the wrong number, in addition to requesting that Citibank stop calling the Plaintiff. Further, the Plaintiff, allegedly, does not know the individual who Citibank says is responsible for the debt.
The TCPA class action lawsuit seeks, among other relief, statutory damages and was filed in United States District Court, Central District of California (5:18-cv-01105).
Do You Believe You Are a Victim of Illegal Robocalls, Text Messages, “Junk” Faxes or Telemarketing Sales Calls?
If you have received illegal robocalls, text messages, “junk” faxes or telemarketing sales calls, you may be able to recover at least $500 for each illegal call, text or fax you received and, possibly, as much as $1,500 for each illegal call, text message or facsimile that was made either willfully or knowingly in violation of the TCPA.
To help evaluate your potential legal claims under the Telephone Consumer Protection Act, please complete KLF’s confidential Robocall Questionnaire or, if you prefer to speak with an attorney, please complete the form above on the right, e-mail [email protected] or contact Michael Yarnoff, Esq., [email protected], (215) 792-6676, Ext. 804, for a free, no-obligation evaluation of your potential legal rights.
May 24, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. has commenced an investigation on behalf of investors of Rockwell Medical, Inc. (NASDAQ: RMTI) concerning RMTI’s possible violations of federal securities laws.
Rockwell Medical Terminates Its CEO
On May 23, 2018, Rockwell Medical filed a Form 8-K which, in pertinent part, stated:
In March 2018, the Board of Directors (the “Board”) of Rockwell Medical, Inc. (the “Company”) appointed Benjamin Wolin and Lisa Colleran as members of the Board. Subsequent to their appointment, the newly augmented Board conducted a thorough review of the Company’s business, including an evaluation of management. Following this review, the Board convened a meeting on May 22, 2018, at which time the Board voted to terminate the employment of Robert Chioini as President and Chief Executive Officer, effective immediately. Pursuant to the terms of Mr. Chioini’s employment agreement, and as a result of the termination of his employment, Mr. Chioini is also deemed to have resigned all employment and related job duties and responsibilities with the Company, including without limitation any and all positions on any committees or boards of the Company.
Following the May 22, 2018 Board meeting and without authorization, Mr. Chioini and Thomas Klema, Vice President, Chief Financial Officer, Treasurer and Secretary, filed a Current Report on Form 8-K making certain assertions regarding the independent directors who voted in favor of Mr. Chioini’s removal. The assertions contained in this filing are unrelated to the Board’s action to terminate Mr. Chioini from his roles.
Due to the conduct of Mr. Klema in connection with and following the termination of Mr. Chioini, including causing the filing of the unauthorized Current Report on Form 8-K, the independent directors of the Board have voted to remove Mr. Klema from his roles at the Company as well, which removal will be formally made effective by the Board at the earliest practicable date. (Emphasis added)
Rockwell Medical’s May 22, 2018 press release, which accompanied its Form 8-K filing (“Special Transition Committee Established; Permanent CEO Search Underway Company Reiterates Recently Reported Financial Results and Cash Position”), among other things, stated:
Rockwell Medical . . . announced that its Board of Directors has formed a Special Transition Committee to provide board-level oversight over the Company’s strategic direction and day-to-day operations, effective immediately. The Board of Directors also announced that the Company’s President and Chief Executive Officer, Robert Chioini, has been terminated from his positions, effective immediately. In connection with [the] announcement, Mr. Chioini has resigned as a member of the Board and will not stand for reelection at the 2018 Annual Meeting of Shareholders. (Emphasis added)
Rockwell Medical’s CEO Issues Press Release
Rockwell Medical announced that the Company’s President and Chief Executive Officer, Robert Chioini, had been terminated “effective immediately” from his positions. On May 23, 2018, however, a letter to RMTI shareholders was published on behalf of Chioini explaining that he had called an emergency Board meeting for the purpose of discussing alleged breaches of fiduciary duties and other possible violations of securities laws by various directors of Rockwell Medical, and that those directors whose conduct was the subject of the alleged breaches of fiduciary duties voted to fire Mr. Chioini.
Rockwell Medical Issues Statement Reiterating Robert Chioini’s Termination as CEO
On May 24, 2018, Rockwell Medical issued a press release again representing that Chioini had been terminated as CEO. The press release also disclosed that the Company had filed a complaint against Chioini seeking, among other things, a temporary restraining order to enjoin Chioini from holding himself out as the CEO of Rockwell Medical. Specifically, Rockwell Medical stated that “[a]s a result of Mr. Chioini’s behavior and actions following his termination, and in acting in the best interests of the Company and all its stakeholders, the Company has filed a verified complaint in the Oakland County Circuit Court in Michigan seeking declaratory relief and a temporary restraining order, enjoining Mr. Chioini from certain actions with respect to the Company, including holding himself out as Chief Executive Officer.”
Rockwell Medical Stock Trading Halted by Nasdaq
As of, May 23, 2018, trading in the Company’s shares has been halted, until Rockwell satisfies Nasdaq’s request for additional information.
Rockwell Medical Shareholders and Investors
If you purchased Rockwell Medical securities and would like to learn more about Kehoe Law Firm’s securities investigation or your rights as an investor, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].
May 18, 2018 | Consumer Protection, Employment & Technology Archive
Recently, a class action lawsuit was filed in United States District Court for the Western District of New York against the University of Rochester seeking to protect the retirement savings of more than 36,000 employees who are participants in the University of Rochester’s Retirement Program.
The University of Rochester, according to the class action complaint, has a fiduciary duty to ensure that the school’s federally-regulated retirement plan does not charge excessive fees. Allegedly, over the past six years, University of Rochester plan participants have paid approximately $72 million in “grossly excessive” recordkeeping, distribution, and mortality risk fees – fees which, allegedly, are “close to ten times what they should be.”
The complaint against the University of Rochester was brought by a Plaintiff who has been paying more than $500 in service fees a year to TIAA, when “a reasonable fee for administrative services is no more than $50 per year.” There is, according to the complaint, “absolutely no legitimate basis why Plaintiff should be paying TIAA more than $500 per year for its services.”
According to the class action complaint:
All retirement plans require administrative services. The University [of Rochester] contracted with TIAA to provide administrative services for its Plan. TIAA pockets the bulk of the excessive fees. The reason why TIAA has been able to extract such grossly excessive fees is because TIAA’s fees are tethered not to any actual services it provides to the Plan, but rather, to a percentage of assets in the Plan. As the assets in the Plan increase, so too increase the fees that TIAA pockets from the Plan and its participants. One commentator likened this fee arrangement to hiring a plumber to fix a leaky gasket, but paying the plumber not on actual work provided but based on the amount of water that flows through the pipe. (Emphasis added)
The class action complaint states that the action against the University of Rochester
. . . is similar (but narrower in scope) to 18 separate lawsuits pending in federal district courts around the country.[] In each of [the] other lawsuits . . . plaintiffs allege a university defendant breached ERISA fiduciary duties by allowing TIAA to collect excessive fees from the university’s retirement plan. It appears TIAA exploited its rich heritage of being a non-profit low-cost financial service provider and duped universities into excessive fee arrangements. But now university plan participants are fighting back and demanding TIAA reduce its fees. It appears TIAA is willing to meaningfully reduce its fees if universities will just ask. By way of example, shortly after the University of Chicago was sued, it announced to its plan participants that it renegotiated TIAA’s fees, and successfully reduced fees on an annual basis by several million dollars. (Emphasis added)
Further, rather than “leveraging the Plan’s tremendous bargaining power to benefit Plan participants,” the University of Rochester, allegedly, “failed to adequately take proper measures to understand the real cost to Plan participants for TIAA’s services, to properly inform participants of the fees they were paying to TIAA as required by law, and most importantly, to act prudently with such information. As a result, Plan participants pay excessive fees for TIAA’s services.” (Emphasis added)
401(k), 403(b), Employee Stock Ownership & Other Retirement Plan Participants
If you believe your retirement plan investments have suffered losses due to imprudent investments, breaches of fiduciary duty, misrepresentations, excessive, unreasonable or undisclosed retirement plan fees or other corporate wrongdoing by retirement plan administrators and managers, please contact Kehoe Law Firm, P.C. by completing the form above on the right or sending an e-mail to [email protected].
