Class action alleges pricing fraud by medical waste disposal firm

A dentist and a veterinary practice have filed a class action complaint against a medical waste disposal service firm claiming pricing fraud.

Dr. David W. Mermilliod and Abadie Veterinary Hospital, LLC, both of Harahan, filed a class-action lawsuit against Stericycle Inc. of Northbrook, Ill., in the U.S. District Court of the Eastern District of Louisiana on May 12 citing trade practice violations culminating in March 2015.

The suit states that Stericycle, the nation’s largest medical waste disposal company, created a fraudulent scheme designed to funnel extra money to the firm by overcharging clients, resulting in millions of dollars’ worth of alleged unjust enrichment.

The suit says Mermilliod first contracted with Stericycle on Jan. 11, 2012, and became aware of the alleged fraud in March 2015. The plaintiffs assert that the defendant’s actions were intentional and carried out with forethought on a national scale as well as statewide. The suit cites previous compliants in a similar case in New York.

The suit maintains that automatic price increases targeted to small customers were built into contracted “flat monthly” fees; automatic renewal periods subtly contained in agreements’ fine print; and other systematic procedures designed to increase Stericycle’s profits.

The suit requests injunctive action; actual damages; and pre- and post-judgment interest, attorney’s fees, expenses, and court costs.

The plaintiffs are represented by Charles F. Zimmer II of River Ridge and Eric O’Bell of Metairie.

U.S. District Court of the Eastern District of Louisiana case number 2:15-cv-01563-EEF-MBN