In a private action alleging that DirectBuy misrepresented the extent of its at-cost savings at its home furnishing buyer’s club stores, the parties reached a proposed class action settlement whereby current and former customers were eligible to receive a “free” two month membership to DirectBuy in exchange for the release of their legal claims.
Tennessee led the multistate effort opposing the settlement. The multistate effort, which involved 40 Attorneys General, is the largest collective action by the Attorneys General opposing a class action settlement since the passage of the Class Action Fairness Act in 2005. The Attorneys General argued that this relief was not meaningful and amounted to a sales vehicle designed to both drive current and former DirectBuy customers into membership renewal contracts and to the same manufacturers and suppliers from whom DirectBuy acknowledged receiving kickbacks and other incentives. Following the brief submitted by the Attorneys General and arguments from others, the court rejected the settlement.
This list includes only significant filings and is not intended to be a complete record of the matter.