North Carolina Receives $2.7 Million in Stericycle Settlement

North Carolina Receives $2.7 Million in Stericycle Settlement
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October 12, 2015

A waste disposal company has agreed to pay $2.7 million to North Carolina to settle allegations of overcharging.

Stericycle, Inc. will pay a total of $26.75 million in penalties for violating U.S. and state false claims laws. The company charged schools, health departments, colleges, law enforcement agencies, fire departments, Emergency Medical Services, and towns and cities millions of dollars more than it should have to dispose of medical waste, according to Attorney General Roy Cooper.

"Hiking prices unfairly isn't the way to do business with our schools, law enforcement, and health departments," Cooper said in a written statement. "We're cracking down on illegal schemes that waste tax dollars."

Along with 12 other states and the federal government, North Carolina contends that Stericycle required government customers to pay fuel surcharges that did not reflect actual increases in the company's energy costs. Based on an account from a whistleblower, the surcharge amounted to an 18 percent increase over every nine-month period.

Under the law, the whistleblower will receive a percentage of North Carolina's recovery in the case totaling about $685,000.