Settlement of a state lawsuit against LA Weight Loss will provide $200,000 for refunds to Oregonians who bought services and products from the now-defunct diet-center chain, Attorney General John Kroger said Monday.
Consumers who think they are owed refunds should contact the attorney general’s office, Kroger said in a news release Monday.
Kroger’s office has sole discretion in determining which consumers are eligible for refunds, along with repayment amounts, court documents say.
“But since we’re waiting until July 31, 2009, when all of the consumer requests for refunds come in, we can’t say how much anyone will get and what they get refunds for,” said Tony Green, Kroger’s spokesman.
Under the settlement, LA Weight Loss and its former Oregon franchise owner will pay additional refunds directly to about 100 Oregonians for prepaid time left on consumer contracts when their diet centers closed. The refunds are expected to range from $149 to $299 for each person, Green said.
The settlement agreement, filed Monday in Marion County Circuit Court, resolves a 2007 state lawsuit against LA Weight Loss Franchise Co., a Pennsylvania-based company, and its former Oregon franchisee, NWM Inc. of Lake Oswego.