Wednesday, January 9, 2013
 

 

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Medical waste company settles allegations of overcharging

NEW YORK –A $2.4 million settlement with one of the nation’s largest medical waste disposal companies, Stericycle, Inc., was announced on Tuesday by Attorney General Eric Schneiderman Stericycle was accused of improperly overcharging nearly 1,000 New York government entities, including police and fire departments, rescue squads, schools, jails, and hospitals all over the state. Since 2003, Stericycle implemented a plan to charge automated price increases (APIs) without giving any notice to these customers and in violation of the contract terms.

As a result of the Attorney General’s settlement, every impacted government entity will receive a check from Stericycle covering 100% of the overcharged amount, over $820,000 in all. In addition, under the agreement, Stericycle will permanently discontinue APIs to the New York Government Customers covered by the settlement and provide notice and opportunity to opt-out before any future rate increases of any kind.

“Stericycle improperly profited by overcharging New York taxpayers,” said Attorney General Schneiderman. “In these times of harsh budget cuts to education, public health, and public safety, local governments and agencies need every available dollar and we will hold accountable corporations like Stericycle that use cynical schemes to rip off New York taxpayers.”