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.