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Stumbo Announces Suit
Against Yellow Pages, Inc.
FRANKFORT KY (March 16, 2005)
- Attorney General Greg Stumbo announced today the filing
of a civil lawsuit against four defendants in California who
send small checks to hundreds of Kentucky consumers as part
of an illegal solicitation. The lawsuit, filed today in Jefferson
Circuit Court, alleges that when the checks for $3.47 were
cashed, the defendants claimed the consumers were obligated
to pay $177 for Internet directory services. The checks were
sent from Yellow Pages, Inc. When consumers did not pay the
bill, it was turned over to a collection agency, Continental
Recovery and Filing Solutions.
The defendants are Yellow Pages, Inc., which
is a Nevada Corporation but operates from Anaheim CA, and
its President, John Wurth, and Continental Recovery and Filing
Solutions, of Simi Valley CA and Marwan Kashou, its President.
Under Kentucky Statute, KRS 372.160, checks
being mailed as a solicitation must contain certain mandatory
disclosures. The lawsuit alleges all defendants failed to
follow the terms of the statute and also violated the Kentucky
Consumer Protection Act. Kentucky is the only state with this
statute but, due to this type of solicitation, several other
states have introduced similar legislation using the Commonwealth’s
statute as a model.
“Kentucky consumers were cheated in
this scam. This lawsuit will help deter others who are seeking
to profit through deceptive and misleading practices,"
Attorney General Stumbo said.
To date, Texas and Washington have also sued Yellow Pages,
Inc and its President. Illinois has sued Yellow Pages, Inc,
its President, as well as Continental Recovery and Filing
and its President.
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