|  | | 2008 News and Press Releases | | |
DISMISSAL NEWS:
Wet Seal: Plaintiffs Dismiss FCRA Violations Suits In California
Staff Writer
Class Action Reporter, Beard Group, Inc., http://www.beardgroup.com/. October 13, 2008
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EXCERPT: The plaintiffs in purported class-action lawsuits against The Wet Seal, Inc., over alleged violations of credit rules are dismissing their cases against the company, according to the company's Sept. 4, 2008 Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended Aug. 2, 2008. In January 2007, a class action complaint was filed before the U.S. District Court for the Central District of California, alleging violations of The Fair Credit Reporting Act. The Act provides in part that portions of the credit card number may not be printed together with expiration dates on credit or debit card receipts given to customers. It imposes significant penalties upon violators of these rules and regulations where the violation is deemed to have been willful. Otherwise, damages are limited to actual losses incurred by the card holder. In February 2007, a second class-action complaint was filed against the company alleging similar violations in the same court. Both parties in the February 2007 complaint have agreed to dismiss the complaint with prejudice. On Dec. 11, 2007, the company reached a tentative agreement to settle the January 2007 suit for less than $0.1 million. However, prior to the receipt of the executed settlement agreement, on Feb. 8, 2008, the company was named in another action, alleging the same violation, in the U.S. District Court for the Western District of Pennsylvania. As a result, the company withdrew its offer to settle the January 2007 action. On June 3, 2008, the Credit and Debit Card Receipt Clarification Act of 2007 was enacted. This measure amends the FCRA to declare that a company that printed an expiration date on any receipt provided to a consumer cardholder at the point of sale or transaction between Dec. 4, 2004, and the enactment of this legislation, but otherwise complied with FCRA requirements for such receipt, will not be in willful noncompliance by reason of printing such expiration date in it. |
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