In 2016, a class action suit was filed against Stericycle claiming that the company had defrauded small-business customers by engaging in a billing scheme that automatically inflated consumer bills up to 18% biannually. 

The lawsuit was filed on behalf of 246,000 small businesses, which included funeral homes, dentists, veterinarians and other business owners. 

Following the filing of the litigation and discovery, a settlement was reached between Stericycle and the attorneys for the class. Under the settlement, Stericycle agreed to discontinue the pricing practices that were the subject of the complaint. In addition, Stericycle agreed to a $295 million settlement. 

The U.S. District Court for the Northern District of Illinois approved the settlement and Stericycle began to reimburse the impacted customers the amounts they had been overbilled. 

According to Scott Gilligan, NFDA general counsel, association members have received reports that funeral homes that were customers of Stericycle have begun to receive checks from Stericycle for their share of the settlement.

This article originally appeared in the October 25, 2018, issue of the Memorial Business Journal.