DirectBuy's Class-Action Settlement Opposed by 39 Attorneys General

The attorneys general of 37 states, as well as the District of Columbia and the Commonwealth of Puerto Rico, are objecting to the proposed settlement of a class-action lawsuit against DirectBuy Inc., which they say "offers no real benefits to consumers."

The 2009 lawsuit (Wilson et al v. DirectBuy, Inc., et al) accused Indiana-based DirectBuy of fraud because the company allegedly received tens of millions of dollars in kickbacks and incentives from suppliers and manufacturers, inflating the cost of the goods above the advertised wholesale prices. The lawsuit alleged that DirectBuy did not disclose this arrangement to customers until early 2009.