LA WEIGHT LOSS to Refund $200K to Members
May 6, 2009 by Sean Kelly
Filed under QUIZNOS
According to the website Weight Loss Complaints, LA Weight Loss has reached a settlement agreement with the Oregon attorney General, and agreed to refund members in Oregon up to $200,000 for services and products they paid for, but never received. The full press release and settlement agreements are posted at LA Weight Loss to Refund Members $200,000
According to the release:
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…
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.
For LA Weight Loss refund information, see: LA Weight Loss to Refund Members $200,000
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Pure Weight Loss Meeting of Creditors Set for March 14
February 22, 2008 by Sean Kelly
Filed under LA WEIGHT LOSS, PURE WEIGHT LOSS
(FranchisePick.Com) The bankrupt Pure Weight Loss (formerly LA Weight Loss) chain and owner, Vahan Karian, who left thousands of former members and employees without hundreds of thousands of dollars in services, products, refunds and paychecks is due in court March 14. FranchisePick.com contributor Sue wrote:
I just received a notice from Bankruptcy Court regarding the case of PWL [Pure Weight Loss]. There will be a “Meeting of Creditors” at 10 am, March 14th at the William J. Green Federal Building in Philadelphia (600 Arch St., 2nd floor conference room, 10:00 am).
I don’t know if I can make it (don’t have to attend if I file my complaint by mail) but I think it would be great to go if I could get a bunch of their “creditors” (that’s US) to be there to face this shmoe down!
Anyone want to come to Philly??
If you are owed money by Pure Weight Loss, you should file a claim form through the bankruptcy court. Click here for Pure Weight Loss Bankruptcy information and forms.
Road Trip Idea: Why not come to Philadelphia for the Pure Weight Loss Creditor’s Meeting on the 14th and stay over ’til St. Patrick’s Day on the 17th? We can throw a Pure Blarney Party & I’ll teach you all the acclaimed Sean Kelly Corned Beef & Guinness Diet. We’ll invite Vahan Karian (A fine Irish lad) along and get him to run out on the tab. I hear Vahan sings a version of Danny Boy so sweet it could bring tears to yer glass eye.
Pure Weight Loss Employees Also Suffering Losses
February 20, 2008 by Sean Kelly
Filed under LA WEIGHT LOSS, PURE WEIGHT LOSS
(FranchisePick.Com) Hundreds, perhaps thousands, of comments have been posted on FranchisePick.Com by victimized Pure Weight Loss (until recently LA Weight Loss) members, some of whom lost several thousand dollars when the 400 unit chain closed abruptly last month with seemingly little regard for its members or employees. While most media attention focuses on the former group, an article posted today in The Times of Northwest Indiana also describes the plight of the Pure Weight Loss employees who were as surprised as their members at their employer’s abrupt closing.
The Times interviewed Ruth Moton, the former assistant regional manager for 11 Chicago-area stores. In September, Moton sold her house and moved to Chicago from Pennsylvania at the company’s request. She signed a lease and incurred thousands of dollars in reimbursable moving and related expenses.
Then, a few weeks before Christmas, Moton and other employees were told the chain would close January 2, 2008, and they would start the new year unemployed. Pure Weight Loss has since filed for bankruptcy protection. The company and its founder Vahan Karian are being sued by the PA Attorney General for fraud.
According to Moton, the company owes many employees. Some final paychecks bounced, and while some employees have been able to roll their 401(k)s into IRAs, “trying to get her 401(k) savings has become a ‘full-time job,’ she said.”
Moton said consumers continue to suffer. Chicago-area stores alone had almost 1,000 active customers who came in every week. Customers who were excited to sign up during promotions in the final months could be out large sums.
“A lot of my centers had open houses in October and November, a time when prices were reduced and a lot of the clients took advantage of that and bought more products that apparently (the company) didn’t even have to get to them,” Moton said.
Last month, Pennsylvania Attorney General Tom Corbett filed a consumer protection lawsuit against Pure Weight Loss and its owner Vahan Karian, also known as Vahan Karabajakian. The lawsuit alleges deceptive marketing and sales of long-term contracts for weight loss supplements, prepackaged food and weight loss counseling services.
In a statement, Corbett said the company owes more than a half-million dollars to Pennsylvania customers alone.
