Wood pellet suit ends in settlement

Nick Rees May 3, 2010, 2:38pm


HARTFORD, Conn. (Legal Newsline) - Connecticut Attorney General Richard Blumenthal announced on Monday that a pellet company and its owners will pay at least $55,000 in restitution to consumers over allegations that it failed to deliver on prepaid wood pellets.

The agreement resolves a 2008 lawsuit filed by Blumenthal in cooperation with Department of Consumer Protection Commissioner Jerry Farrell, Jr., against New England Pellet LLC of Enfield and Stephen Zaczynski and Jason Tynan, the company's co-owners.

"This settlement secures money back -- at least $55,000 -- for consumers who paid for pellets they never received," Blumenthal said.

"Consumers must get what they pay for, or companies must provide refunds, which New England Pellet is doing. I am pleased that New England Pellet and my office reached a resolution fairly compensating the company's customers, and I commend the company for providing these refunds."

New England Pellet was alleged to have solicited, advertised and sold pre-paid wood pellets orders despite knowing that the orders could not be filled. The company allegedly promised consumers repeatedly that the pellets would be delivered.

Approximately 250 Connecticut consumers qualify for refunds from the settlement, Blumenthal said, adding that he expects all state consumers who can produce verified claims will receive full refunds.

Any consumers who did not file claims in New England Pellet's bankruptcy case are eligible to apply for the restitution secured by Blumenthal. Additional cash will be provided by New England Pellet and its owners if the total claims exceed $55,000.

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