A defunct Massachusetts parenting-education business will pay nearly $260,000 in restitution and fines after it was accused of defrauding customers. | Contributed photo
A Massachusetts parenting-education business will pay approximately $260,000 to settle a case with the state over allegations the financially troubled company continued to advertise and accept payments for its services before closing abruptly in January 2014, Massachusetts Attorney General Maura Healey said.
Isis Parenting allegedly sold and continued to market classes, goods and other services even though it knew it didn't have enough funds to provide the services. The company also didn't give customers who purchased the classes, goods or services a chance to receive a refund after it shut its doors last year.
The settlement was filed in Suffolk Superior Court last week. Healey said companies in the state are obligated to “treat customers fairly and deliver on promises” made.
“When Isis Parenting went out of business, it left many new and expecting parents without the prenatal and parenting courses they paid for and were depending on,” Healey said. “We are pleased that this settlement will provide restitution to these consumers.”
Isis Parenting will pay about $184,000 to customers, $50,000 in civil penalties and $25,000 in attorney's fees. The company operated four locations in the state, in Arlington, Hanover, Needham and Boston. Customers who have not received refunds after paying the company for classes, memberships or other goods or services will receive restitution through a claims process, Healey said.