Pennsylvania AG sues Pure Weight Loss
The Pennsylvania attorney general filed a lawsuit against Vahan Karian and his company, Pure Weight Loss Inc., the once fast-growing weight-loss chain that abruptly closed its doors and filed for federal bankruptcy protection in January.
Tom Corbett filed the consumer protection lawsuit, alleging deceptive marketing and sales of long-term contracts for weight loss supplements, pre-packaged food and weight loss counseling services. Corbett said the company continued to sell contracts four days after announcing last year its decision to close 400 stores. The company blamed its downfall on fierce competition in the diet industry.
More than 850 customers had prepaid as much as $2,000 for products that were never distributed. "Taking money from consumers for goods that cannot be delivered is a clear violation of Pennsylvania's Consumer Protection Law," said Corbett.