Idaho AG settles with Utah law firm
BOISE (Legal Newsline) - Idaho Attorney General Lawrence Wasden announced a settlement on Thursday with Corvus Law Group LLC, resolving allegations that the firm used direct mail ads that violated the Idaho Consumer Protection Act.
The Utah-based Corvus Law Group, which maintains an office in Post Falls, will change how it solicits Idaho clients and will better inform possible clients about the services the law firm offers. The law firm must also pay Wasden's office $3,000 as a reimbursement for court and case costs.
Wasden's office looked into Corvus Law Group after receiving complaints from consumers about solicitations the firm sent through the mail. The firm allegedly sent out forms labeled "Form CLG 0127 Litigation Settlement Notification" that claimed the consumer was eligible to participate in a multi-plaintiff lawsuit that was pending against the purported mortgage servicer of the consumer.
After calling the toll-free number on the form, the consumers allegedly learned that the lawsuit had not been filed and that to participate in a possible lawsuit, a consumer would have to pay Corvus Law Group a $5,000 retainer fee.
Under the terms of the settlement, Corvus Law Group may not use deceptive advertising methods, such as envelopes that appear to come from the government, and may not claim that the recipient of a solicitation is a party to a settlement or lawsuit. Additionally, the firm must disclose the Idaho State Bar number and name of at least one Idaho licensed attorney who will represent the consumer in solicitations to Idaho consumers.
"Litigation is a lengthy, expensive, and stressful process and there are no guarantees of a successful outcome," Wasden said. "It is very important that consumers have knowledgeable counsel to help them weigh the risks and benefits of litigating their particular case."