McCollum, iMergent settle

by John O'Brien |
Sep. 2, 2008, 1:53pm


TALLAHASSEE, Fla. (Legal Newsline) - An eServices provider on Tuesday continued to settle litigation against it, reaching an agreement with Florida Attorney General Bill McCollum.

McCollum's pact with iMergent, Inc., requires the company, which provides software for small businesses, to change its marketing practices and give refunds to more than 150 Floridians.

The company will pay fees totaling $125,000 and will reimburse those who file claims within 30 days of entry of the judgment. It will also refund up to $250,000 to those who file claims in the next 18 months and can demonstrate a misrepresentation has been made to them.

"The Attorney General of the State of Florida has completed a very long and thorough review of the company's business practices," said iMergent's general counsel, Jeff Korn.

"The Attorney General made some suggestions including increasing the refund period for seniors to 15 days, which we have already incorporated world wide. We are always willing to work to take any action that makes our sales model more transparent.

"We have reserved for the refunds expected and do not expect refunds after the 30 days to have a significant impact as we do not believe there have been any misrepresentations made to customers."

McCollum alleged that iMergent and one of its subsidiaries, StoresOnline, were selling products that were impossible to use and offered technical assistance for thousands of dollars in extra charges.

In April, Blumenthal reached an agreement with Connecticut Attorney General Richard Blumenthal. The company had to pay $65,000 to the State and $65,000 to an estimate 10-12 consumers eligible for restitution.

It also settled a class action complaint, agreeing to pay $2.8 million to plaintiffs.

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