N.Y. AG files lawsuit against Cohoes textile manufacturer

By Bryan Cohen | Nov 18, 2013

ALBANY, N.Y. (Legal Newsline) - New York Attorney General Eric Schneiderman filed a lawsuit on Friday against a Cohoes-based textile manufacturer and its owner for allegedly failing to deliver bulk-ordered dishcloths to hundreds of charitable and religious groups.

Sangamon Mills and Michael Scott, the company's owner, allegedly failed to fulfill orders that were paid in full. Sangamon Mills then allegedly continued to accept new purchases and cash checks after the factory was shuttered in April for multiple building code violations. Sangamon Mills allegedly failed to ship merchandise to more than 100 non-profit and religious organizations that placed and paid for orders of dishcloths.

"Sangamon Mills' conduct is especially egregious not only because the business took advantage of its loyal customers, but also because those consumers were nonprofits and church groups that use the dishcloths to raise funds for charitable purposes," Schneiderman said. "While my office pursues justice and restitution for these victims, the court's injunction ensures that Sangamon Mills will not be able to prey upon any additional organizations."

Schneiderman's lawsuit alleges that Sangamon Mills violated state and federal law by failing to notify customers it was not able to deliver dishcloths in the advertised delivery timeframe and give the customers an option to cancel and obtain refunds.

The suit seeks a permanent injunction that would prohibit Sangamon Mills from engaging in deceptive and illegal practices, restitution for consumers and the payment of penalties and costs.

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