Fraud Suit Filed By New York State
The state of New York has a filed a lawsuit totalling $250 million against H&R Block Inc. The lawsuit alleges that the company, which is the largest tax preparation service in the nation, caused around half a million customers to enter into a retirement account plan that lost them money.The tax preparation company has claimed that the plan is a valuable one and that its customers "rely on it as a helpful savings option." H&R stated that it will do its best to ensure that the plan remains available to clients who wish to utilize it.
The Kansas based firm has faced a number of legal problems in recent times, and following the news of this lawsuit the company’s shares decreased by more than six percent. A number of other states have sued the firm over its high interest, short term loans known as 'refund anticipation loans'.
With regards to the refund anticipation loan lawsuits filed against it, the firm has recently agreed to a settlement of over 60 million dollars, which will be used to settle a number of the class action suits, while others remain pending.
Topic Added March 30th, 2006
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