WMP Files Class Action Lawsuit Against Universal Music Group for Withholding Shares of Spotify Stock from Artists

For more information or to join this case, contact us by clicking here, calling (914) 775-8862, or emailing us at case@wittelslaw.com.

On January 4, 2023, WMP filed a class action lawsuit in New York Federal Court to recover hundreds of millions of dollars for artists allegedly victimized by Universal’s withholding of shares of Spotify from artists.    

The suit alleges that Universal breached its contracts with artists and deprived them of the royalties they are contractually owed.  Specifically, Universal is alleged to be withholding hundreds of millions of dollars in royalties from artists through a previously undisclosed arrangement whereby Universal licensed artists’ recordings to the Spotify music streaming service in exchange for Spotify stock and lower royalty payments.  Under this arrangement, WMP’s suit alleges that instead of paying artists their full royalty payments, Universal made smaller payments and held onto Spotify stock that contractually belongs to Universal’s artists.

The suit also alleges that Universal concealed from artists that it acquired Spotify stock and that royalty payments were depressed as a result.  Over time, the value of the Spotify stock that Universal improperly withheld from artists is alleged to have ballooned to hundreds of millions of dollars.

To read the Class Action Complaint, click here.

To contact us about this case, click here.

 

WMP Files $50+ Million Class Action Lawsuit Against NY’s Largest Beer Distributor Manhattan Beer and CEO Simon Bergson for Fraudulent Bottle Deposit Charges

For more information or to join this case, contact us by clicking here, calling (914) 775-8862, or emailing us at case@wittelslaw.com.

On February 18, 2022, WMP filed a class action lawsuit in New York Federal Court to recover tens of millions of dollars for consumers victimized by Manhattan Beer’s illegal billing scheme.  

The suit describes how the beer giant boosts profits by adding hidden surcharges to invoices for top-selling brands like Corona, Coors, and Mike’s Hard Lemonade. 

Specifically, the company uses deceptive invoices to dupe small businesses into paying bottle deposit charges that are higher than what the law allows.  Adding insult to injury, the lawsuit alleges that the beer giant only surcharges its smaller mom and pop customers but not larger customers like supermarket chains.

“Manhattan Beer’s CEO Simon Bergson likes to boast that his company provides ‘best-in-class service’ to its customers,” says lead lawyer Steven L. Wittels.  “But you can’t be best if you rip off your customers by collecting millions a year in sham bottle deposit charges,” he adds.

“This isn’t the first time Manhattan Beer has been caught red-handed hurting the little guy,” continues partner J. Burkett McInturff.  “A Federal judge recently ruled that Manhattan Beer makes illegal deductions from its workers’ wages in another class action our firm brought against the company.” 

With over one billion dollars in annual revenue, and sales of more than 45 million cases of beer and hard beverages a year, the millions Manhattan Beer reaps from its bottle deposit scam translates to even higher profits for company executives.

“Let’s just say that’s a lot of beer money,” adds lead class lawyer Steven L. Wittels, “and the small businesses Manhattan Beer stole it from would like it back.”

To read the Class Action Complaint, click here.

To contact us about this case, click here.

WMP Files $10 Million+ Class Action Lawsuit Against CareCube for Scheme to Overcharge for COVID-19 Tests

For more information or to join this case, contact us by clicking here, calling (914) 775-8862, or emailing us at case@wittelslaw.com.

On February 17, 2022, WMP filed a lawsuit in Kings County New York Supreme Court to recover tens of millions of dollars for patients victimized by CareCube’s illegal billing schemes related to the COVID pandemic.

CareCube has been systematically charging patients for bogus doctor visits they claim were needed before CareCube would administer a COVID-19 test.  CareCube has also systematically charged patients for their COVID-19 tests upfront while falsely assuring customers that they will eventually receive reimbursement.

As the lawsuit details, while consumers waited in long lines for COVID-19 tests, CareCube’s revenue skyrocketed, and the company expanded across New York City.  Dozens of unhappy customers complained in online forums, to legislative officials, and to reporters that they were charged for doctor visits that never happened and that CareCube broke its promise of free COVID testing.  In August 2021, CBS New York reported on the many online and Better Business Bureau complaints about CareCube’s fake billing, prompting New York City Comptroller Brad Lander to contact the New York Attorney General’s office and call for an investigation of CareCube’s “deceptive and fraudulent practices.” 

WMP’s class action amplifies Lander’s alarm that CareCube is “adding in just made-up other charges” to consumers’ bills.  On January 6, 2022, the New York Attorney General’s Office announced that it was officially investigating CareCube, followed by a report from New York Magazine that the company is also under Department of Justice scrutiny. 

CareCube’s sneaky practices are emblematic of the rampant medical billing fraud in America today. The National Health Care Anti-Fraud Association conservatively estimates annual health care fraud at $108 billion.  COVID-19 scams are also widespread, leaving governments to warn the public to stay vigilant.  The United States Food and Drug Administration, United States Department of Health and Human Services Office of Inspector General, and New York Department of Financial Services have also issued warnings to consumers.  Meanwhile. CareCube has been growing under the aegis of a legitimate medical services provider. 

“This suit will prove that CareCube engaged in a massive medical billing scheme throughout New York City,” says Steven L. Wittels, partner with WMP. “For example, our clients were told their COVID tests would be reimbursed by their health insurer, but CareCube billed one individual $225 for a fake doctor’s visit instead of the PCR tests she solely received.  Even a quick review of consumer websites shows that CareCube fleeces consumers for fake consultations and pulls a bait-and-switch where CareCube tells patients at the last second that prices have increased or otherwise misbills consumers to increase the company’s profits.  Many consumers reported that CareCube refused to provide receipts, which from CareCube’s perspective, is a simple way to hide illegal billing practices.”

The lawsuit seeks to recover money consumers paid for illusory doctors’ visits and other fraudulent billing practices in addition stopping CareCube’s illegal practices. The Plaintiffs’ legal team, Wittels McInturff Palikovic, have requested a jury trial.

To read the Class Action Complaint, click here.

To contact us about this case, click here.

WMP Files $25 Million Class Action Lawsuit Against HOP Energy

Wittels McInturff Palikovic has filed a class action against HOP Energy, LLC in the U.S. District Court for the Southern District of New York (Civil Action No. 21 Civ. 10406) on behalf of HOP Energy’s heating oil customers in eight states. 

The class action alleges that HOP Energy agreed to provide heating oil at the prevailing retail price, but instead HOP Energy took advantage of consumers and charged massive premiums.  The Wittels McInturff Palikovic team analyzed HOP Energy’s prices and found that in the 2019 and 2020 winter months, HOP Energy charged customers 60% or more above the prevailing retail price.  As a result, the lawsuit alleges that HOP Energy customers paid tens of millions of dollars more than they would have if HOP Energy honored its promise to charge competitive rates.

The eight states included in the lawsuit are Connecticut, Delaware, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

If you were a HOP Energy customer who was overcharged for home heating oil, we urge you to contact a class action attorney at WMP for a free case evaluation.  Should a lawsuit be brought, there is no cost or fee involved in joining the case.  You can contact us by clicking here, calling (914) 775-8862, or emailing us at case@wittelslaw.com.

To read the class action complaint, click here.

California Federal Judge Green Lights $100 Million Class Action Lawsuit Against Stubhub

On November 22, 2021, U.S. District Court Judge Haywood S. Gilliam, Jr. denied Stubhub’s attempt to force customers who were allegedly denied refunds during the COVID-19 pandemic to arbitrate their California claims.

 

Wittels McInturff Palikovic initially filed a class action lawsuit against StubHub in June 2020, alleging that once the COVID-19 pandemic hit, StubHub reneged on its signature “FanProtect™ Guarantee,” which promised customers full refunds for cancelled events.  The complaint alleges that StubHub changed its longstanding guarantee without warning, instead offering StubHub credit only, while pocketing customers’ money. 

 

WMP’s lawsuit was consolidated with others alleging similar claims against StubHub, and in November 2020, the court appointed WMP partner Tiasha Palikovic co-lead interim class counsel for the multi-district litigation.  In February 2021, StubHub moved to send all Plaintiffs’ claims to arbitration, arguing its user agreement required it.

 

Among the Court’s rulings on StubHub’s motion, Judge Gilliam found the arbitration agreement was unenforceable as to Plaintiffs’ California claims.  Those claims will continue to proceed in litigation.  

 

This ruling is an important victory for the many consumers damaged by StubHub’s broken promises as well as consumers’ rights generally to exercise their constitutional right to use the U.S. court system.

For a copy of the ruling, click here. For a copy of the Complaint, click here.

For more information or to join the case, contact us.