Why the lawsuit that could have saved a company from bankruptcy

Posted September 24, 2018 05:02:08A class-action lawsuit filed by a former paralegals of a Boston-area company seeking to recover more than $100 million in damages claims that the firm used its “fraudulent” marketing and misleading tactics to lure prospective employees and recruiters into a scheme that cost them tens of thousands of dollars.

The Massachusetts Attorney General’s office filed the lawsuit on Tuesday in the U.S. District Court for the Southern District of Massachusetts, saying it is seeking “all possible damages and punitive damages.”

The company, called Drexel University, is the second largest nonprofit employer in Massachusetts.

The company, founded in 1999, has campuses in Cambridge, Worcester, Boston, and Cambridge, according to its website.

In its lawsuit, the Massachusetts Attorney Generals office claims that, in 2014, Drexell University advertised on its website that it was hiring “leaders for paralegamists” and that it offered a salary range of $100,000 to $200,000, and $100 to $150,000 for “fitness, creativity, and the ability to work with a diverse group of partners.”

The Massachusetts attorney general’s office also says that in 2015, Daxon, a company that specializes in medical and pharmacy services, paid Drexella paralegmals a total of $4.7 million to $8.5 million in compensation.

The suit, filed in U.K. Supreme Court, alleges that the company’s marketing of the positions as paralegdists “is based on deceptive and deceptive representations.”

In a statement to the Boston Globe, Doxon said it is “deeply troubled” by the claims, adding that it has “no comment at this time.”

The court filing is the latest in a string of lawsuits over the recruitment of paralegrad employees, who typically serve as medical professionals for employers, and is just the latest to accuse Drexels of misleading recruiters and employers about the compensation offered.

In a lawsuit filed in March in New York State, former paraleskates, including former Boston Marathon runner and current runner Katie Ledecky, sued Drexeled for misleading them about the salary range offered by the company.

In that lawsuit, former and current paralegaes alleged that Drexed was paid by the university $50,000 annually to provide a $60,000 salary, but that this was far less than the full amount paid by a recruiter for the position, the lawsuit stated.

Ledeckys lawsuit also alleged that in 2016, the company allegedly offered a $50-an-hour job at a hotel in New Orleans as an incentive to recruit employees, and that recruiters were required to give a written report to the company about their work experience, according a Boston Globe report.

Drexel’s lawsuit in Massachusetts, however, states that the recruiter was paid for “a much higher salary, based on his or her experience.”

In an email to the Globe, a spokesperson for the Massachusetts attorney generals office said the office is “very concerned by this situation” and would seek a hearing with the company, which has not yet responded to a request for comment.

Follow David on Twitter: @dan_davids

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