LA Weight Loss to Refund Members $200,000

The Oregon Attorney General has issued the following press release:

The Defunct Diet Center Chain and Oregon Franchise Agree to Pay $200,000.

Attorney General John Kroger announced a settlement that will provide up to $200,000 for Oregon consumers who bought services and products from a now-defunct diet center chain.

“Misleading Oregon consumers is not acceptable,” said Attorney General Kroger.

Consumers who believe they are due refunds from LA Weight Loss should contact the Attorney General’s hot line: 877-877-9392 or fill out a refund form on the Oregon Department of Justice’s website: http://www.doj.state.or.us/releases/pdf/lawl.pdf

A 2007 lawsuit by The Oregon Department of Justice alleged that LA Weight Loss and its Oregon franchise owner made false and misleading claims about the program’s costs and fees. The state received 295 complaints about LA Weight Loss centers in Oregon.

The lawsuit named LA Weight Loss Franchise Company, a Pennsylvania-based company, and NWM, Inc., a Lake Oswego-based company.

NWM went out of business two months after DOJ filed suit.

By December 2008, all LA Weight Loss centers in Oregon had closed.

Today, DOJ filed in Marion County Circuit Court a $200,000 settlement with LA Weight Loss Franchise Company and LATO, LLC, a wholly owned subsidiary of LA Weight Loss Franchise Company. Under the settlement, the companies will also pay additional refunds directly to approximately 100 Oregonians for pre-paid amounts that were unused at the time their center closed in Oregon.

Earlier this year, DOJ reached a settlement with NWM.

Assistant Attorney General Eva H. Novick handled the case with assistance from Senior Assistant Attorneys General Greg Smith and Tim Nord.

Attorney General John Kroger leads the Oregon Department of Justice. The Department’s mission is to fight crime and fraud, protect the environment, improve child welfare, and defend the rights of all Oregonians.

Documents:

Stipulated Partial General Judgement

LA Weight Loss Assurance of Voluntary Compliance

LA WEIGHT LOSS Employees Admit They Deceived Members

As LA Weight Loss centers close abruptly throughout the US and Canada, we receive stories from LA Weight Loss employees attesting to the fact that many of the weight loss facilities continued to sell long-term programs right up until the day before they are closing.

Some employees admit to knowing in advance, others claim their franchise owners did not tell them that the center would be closing and that their members would be left stranded with neither their money nor the promised products and services they paid for.

On the post LA WEIGHT LOSS: Employee Alleges Unethical Closing Practices Jessica wrote:

“I was a sales Counselor for LA weight loss who then changed their name to Pure Weight loss. I loved to working with the clients and I really believed in the program. What made me extremely upset was when I found out tuesday morning that by the next week I would no longer have a job. The night before, I sold an A package for 1300 dollars. I had no idea that they would be closing the door. It really bothered me that they never told me and let us sell product like that!!! What makes it worse is that the headquarters was located in PA and people knew me around town. The corporation does not have to run into clients who want a refund, I do and I do not even have the information so that I can help them. I still run into clients who do not have their refund and it has been close to 2 years!!”

On the post La Weight Loss ex-employee warns of closings. Don’t prepay! Charlotte, NC  wrote:

I worked at LAWL in Charlotte are NC. I was let go for caring too much about the clients. I got inside word that our stores were closing down and though I did not tell the clients (tho I wish I would have) I did tell them to get all of their products because so many were closing down and I wanted them to be safe. When our District Mgr heard of this she let me go and held a big meeting for all the centers in north and south Carolinas assuring them that I was bitter and full of lies, that in fact they were growing and would not be closing…….6 weeks later low and behold all my friends went to work to find the locks changed and notes on the doors. Worst place I’ve ever worked, all the upper management got EXACTLY what they deserved, my heart goes out to all the clients though, good luck.

On the post LA Weight Loss Charlotte Franchisee Sheds Unwanted Members, Employees Desi Alexander* wrote

Hi there, when I heard of this terribly tragic end to LA Weightloss of Charlotte, I couldn’t help but feel sorry for both sides of the complaints. Both the employees & the clients. I was the manager of the Rock Hill, SC location for 6 months. We were trained to steal peoples money by the owner of the company, [name withheld]. I made Mr. [name withheld] so much money by taking the money of people I knew would likely not complete the program. Mr. [name withheld] often gave cash rewards to those managers who could get the most money off of people…

It was so bad, that clients gave clothes to one of my staff member who couldn’t even afford to clothe her child. Meanwhile, the center was earning over $30,000 per week. The company’s success rate at the time I was employed there was less than 10%. I came upon clients that were robbed out of weeks, food and essential tools so that they could meet their plans because of the owner.

* The identity of this commenter has been questioned by another commenter.

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LA WEIGHT LOSS: Scammed in Mooresville, NC

Another sad story of a couple scammed by LA Weight Loss.  They prepaid for 6 months and never received a thing, not their money back:

“In July of 2008, My husband and I joined La Weight Loss at the Mooresville,NC location. We joined knowing that we could not do it if we did not do it together. The next day I found out that I was pregnant. We went to the center and they told us that we had recieved a huge discount and if we ask for the refund and wanted to join again it would be 2-3 times more expensive. So we said that we would pay and do the program after the baby was born (which he was just born March 26). The told my husband to try the program without me and if it did not work (because we kept saying that one of us could not do the program without the other) then he could start again when I started. Well obviously it did not work and we were so excited to start the program May 1st just to find out that the center had closed and there is NO centers opened. The phone numbers on the websites had busy-like sounds when you call.

I never even got anything from them and never got any consultations…..I gave them my money and got NOTHING!!!! How do I get my money back. We did not have the Care card but did set up a 6 month payment plan which is already paid for. Can someone help….do i need to contact an attorney? Thank you for any suggestions. On top of needing this money bad since my husband and I are both out of work with a newborn and another child, I feel scammed.”

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