David vs. Goliath

Stericycle is arguably the most dominant player in the business of disposal of Medical Waste. However, this giant has come across it’s own internal and ethical problems. It became apparent it was time to rally many David’s to fight this Goliath. A class action lawsuit was filed on behalf of its Small Quantity (SQ) accounts, blaming the company of defrauding them out of hundreds of millions of dollars.

The scheme was easy enough to perpetuate by simply adding as much as an 18% increase to the customer’s next invoice and basically hope that they did not notice. If the increase went undetected, and paid, they would levy another automatic increase to the invoice six months down the road. By increasing their customers rates, that were under contract, without notice, placed Stericycle in violation of the False Claim Act.

Similarly, in most businesses the big guys that are able to purchase in bulk usually can negotiate volume discounts for their patronage. However, it is the smaller companies that often have to pay premiums. Not only were Stericycle SQ accounts already paying more for their services they became easy marks.

Correspondingly the way that David slew Goliath, the SQ customers were awarded damages.

In a regulatory filing, Stericycle said it reached a proposed resolution of the class action case without admitting any fault or wrongdoing “in order to avoid the cost and uncertainty of litigation.”

The agreement calls for it to establish a $45 million common fund “from which will be paid all compensation to members of the settlement class, attorneys’ fees to class counsel, incentive awards to the named class representatives and all costs of notice and administration.”

Just because a business is considered a giant in their industry does not mean it is the best choice for all. Do your due diligence before you are locked into a contract. Steri-Green is a great alternative when seeking a company to haul and destroy your Medical Waste using a patented process that is eco-friendly and economical. New SQ accounts will forego contracts for their first year of service and receive free OSHA training for employee’s https://www.osha.gov/law-regs.html - OSHA.

 

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