Albany, NY — LA Weight Loss Centers Inc. must pay up in at least one state after closing its clubs around the country starting late last year, filing for Chapter 7 bankruptcy in January and allegedly not refunding money to its clients. Last month, the company reached a settlement to pay $275,000 in refunds to thousands of New York state customers, New York Attorney General Andrew Cuomo announced.
Cuomo's office has identified more than 100 customers so far who were affected by the closures of the company's 45 centers in New York.
“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.”
Cuomo's office received several complaints from New Yorkers who did not get a refund from the company or did not have charges removed from their credit cards for advanced payments made for services and/or products that they never received.