Schneiderman Gets $2.4 Million Settlement For Local Governments

7:19 PM, Jan 8, 2013   |    comments
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By Joseph Spector, Albany Bureau Chief

ALBANY -- Attorney General Eric Schneiderman said Tuesday a medical waste company has agreed to $2.4 million settlement after overcharging more than 1,000 local governments.

Stericycle, Inc., based in Lake Forest, Ill., charged automated price increases for its services and didn't give the local agencies, including police departments and jails, notice of the changes. Schneiderman said the increases violated the company's contract with the agencies.

"Stericycle improperly profited by overcharging New York taxpayers," Schneiderman said in a statement. "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."

The settlement is part of a national whistleblower complaint filed in federal court in Chicago against the company's overcharging by as much as 18 percent.

The settlement means that the local governments will receive a check from Stericycle, a total of $820,000 in all. The company also agreed to discontinue its automatic increases and allow local governments to opt out of any future rate increases, Schneiderman said.

There was no immediate comment from Stericycle Tuesday.

Here's the top taxpayer-funded entities in the WNY region that will receive compensation through the settlement, Schneiderman said:

Wyoming Correctional Facility, Attica - $12,932.15 
Town of Lancaster Police, Lancaster - $8,601.12 
Collins Correctional Facility, Collins - $6,310.67 
Marilla Fire Company, Marilla - $4,540.33 
Brighton Volunteer Ambulance, Rochester - $7,349.51 
Orleans County Nursing Home, Albion - $7,017.76 
Wayne County Sheriff's Office, Lyons - $6,916.68 
Pittsford Volunteer Ambulance, Pittsford - $6,859.40 
Monroe Community College, Rochester - $4,162.62

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