ALBANY, NY -- New York Attorney General Andrew Cuomo announced last week that LA Weight Loss Centers Inc. reached a settlement to pay $275,000 in refunds to thousands of New York state customers who paid for but never received services after LA Weight Loss closed its doors in January 2008.
Cuomo’s office has identified more than 100 customers so far who were affected by the closures.
“As more companies fall victim to the harsh economy, they still have an obligation to abide by the law and be forthright with their patrons,” Cuomo said in a statement. “Many New Yorkers who paid for and never received services from LA Weight Loss now have some vindication.”
In January 2008, LA Weight Loss Centers closed all of its 45 centers in New York state, then filed for Chapter 7 bankruptcy in Philadelphia. Cuomo’s office had received several complaints from customers who did not receive a refund from the company or did not have the charges removed from their credit cards for advanced payments.