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Stericycle discloses class action suit alleging overcharging

Stericycle (SRCL) disclosed in a regulatory filing that on March 12 the company was served with a class action complaint filed in the U.S. District Court for the Western District of Pennsylvania by an individual plaintiff for itself and on behalf of all other “similarly situated” customers. The complaint alleges, among other things, that the company imposed unauthorized or excessive price increases and other charges on its customers in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act and its implied contractual duties of good faith and fair dealing. The complaint seeks certification of the lawsuit as a class action and the award to class members of appropriate damages and injunctive relief, the filing said. Stericycle stated, "The class action complaint has been filed in the wake of our recent settlement with the State of New York of an investigation under the New York False Claims Act. In the settlement, which was announced by the New York Attorney General on January 8, 2013, we agreed, without admitting any liability, to pay $820,000 in refunds to customers and $1,580,000 in penalties to the State of New York to settle allegations that we had overcharged New York governmental customers over a 10-year period." Stericycle added: "We believe that we have operated in accordance with the terms of our customer contracts and that the complaint is without merit. We intend to vigorously defend ourselves."