PA Attorney General Tom Corbett has really come through for the former Pure Weight Loss (formerly LA Weight Loss) members. In a recent press release, Corbett’s office announced it has reached a consent decree that requires the Horsham, PA based company to pay $500,000 to the Pennsylvania Office of Attorney General, for distribution to consumers who pre-paid for products and services that were not delivered, and another $200,000 to provide restitution to consumers who filed claims against Pure Weight Loss in the U.S. Bankruptcy Court.
Additionally, the Pennsylvania Office of Attorney General is also working with authorities from the states of New York and Maryland to recover additional funds for consumers from the states.
[Read full press release here: Pure Weight Loss to Pay $700,000 to Former Members (Weight Loss Complaints)]
Both New York and Maryland require weight loss centers to post security bonds intended to protect consumers against losses, and all complaints involving consumers from those states will be turned over to authorities in New York and Maryland as claims against those security bonds – allowing the remaining funds to be distributed to consumers from Pennsylvania and other states.
When the much-maligned Pure Weight Loss (formerly LA Weight Loss) chain abruptly closed its 400 locations nationwide in January, 2008, it left thousands of members owed hundreds of thousands in prepaid products and services.
In another story, the EEOC has won a $20 Million award against Pure Weight Loss for hiring discrimination. Read more here: The EEOC Celebrates $20M Victory Over Non-Existent Company (about Pure Weight Loss)
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.