Wednesday, March 14, 2012

Idaho AG Lets Law Firm Using Potentially Deceptive Mail Solicitations To Peddle Purported Participations In Mass Joinder Lawsuits Off With Hand Slap

From the Office of the Idaho Attorney General:

  • A Utah law firm that files multi-plaintiff lawsuits against mortgage servicers has agreed to change how it solicits clients in Idaho, Attorney General Lawrence Wasden said []. Wasden’s office reached a settlement agreement with Corvus Law Group, LLC, which maintains an office in Post Falls, Idaho. Pursuant to the agreement, the firm has modified its direct mail ads to comply with the Idaho Consumer Protection Act and to better inform potential clients about the law firm’s services.

  • The Attorney General’s Office began investigating Corvus Law Group after receiving complaints from consumers about the law firm’s direct mail solicitations. Labeled a “Form CLG 0127 Litigation Settlement Notification,” the form also claimed the consumer was eligible to participate in a pending multi-plaintiff lawsuit against the consumer’s purported mortgage servicer. According to consumers, it was not until they called the toll-free number on the form and spoke to a Corvus Law Group representative that they learned a lawsuit had not been filed and that to participate in a potential lawsuit, the consumer first had to pay Corvus Law Group a $5,000 retainer fee.

  • The settlement agreement prohibits Corvus Law Group from using deceptive advertising methods, such as envelopes that appear to originate from the government, and from claiming that the recipient of the solicitation is a party to a lawsuit or a settlement.

  • In its legal services solicitations to Idaho consumers, the firm also must disclose the name and Idaho State Bar number of at least one Idaho licensed attorney who will represent the consumer. Corvus Law Group also must pay the Attorney General $3,000 to reimburse him for the cost of the investigation.

For the Idaho AG press release, see Law Firm Agrees to Change Direct Mail Ads.

No comments: