Brown announces settlement with Midas franchisee
Jerry Brown (D)
SACRAMENTO, Calif. (Legal Newsline)-California Attorney General Jerry Brown on Monday announced a $1.8 million settlement over a bait-and-switch operation run by the owner of 22 Midas auto repair shops.
The settlement also prevents Maurice Glad from owning or operating any auto repair shop in California.
"For years, Glad ran a bait-and-switch scam, in which he deceptively lured customers into his Midas shops with cheap brake specials, then charged them hundreds of dollars more for unnecessary repairs," Brown said.
Brown had filed the lawsuit against Glad back in June 2009, after a four year investigation by the California Bureau of Automotive Repair.
The lawsuit accused the company of using false and misleading advertisements, used unlawful, unfair and fraudulent business practices and disobeyed the 1989 Superior Court injunction.
The $1.8 million award is for damages, investigative costs and attorney fees.
The settlement also prevents the franchisee from; applying for or holding any license or registration issued by the California Bureau of Automotive Repair or any successor agency and engaging in any business that requires any type of license or registration issued by the California Bureau of Automotive Repair or any successor or agency.
"Our settlement makes sure that Glad will never own or operate an auto repair shop in California again," Brown said.