Class Action Lawsuit Against Rushcard

Rushcard has settled a class action lawsuit against them. This suit was brought by the Federal Trade Commission (FTC). The suit charged Rushcard with “misleading” their customers into paying for a two year membership fee when the offers only lasted for six months. As is typical of any company that is facing such a lawsuit, Rushcard immediately denied any wrongdoing and claimed that the six month membership was meant to be a one-time deal.

The class action lawsuit against Rushcard was eventually dismissed.

However, in 2021, the FTC decided to bring the suit forward again, this time seeking monetary compensation for the cost of those six months of membership fees. The court found that there were four class members who received emails promoting rush card business opportunity as opposed to the advertised six. Therefore, the suit was refiled and in the new complaint the class was expanded to include the individuals who had received emails promoting the business opportunity as well as those who had actually signed up for it.

The new complaint against Rushcard also sought damages for the pain and suffering endured by the class members.

Although the judge threw out the class action lawsuit against pushcart, the settlement allows the company to make a settlement offer to settle the case instead of having to go to court. So far, Rushcard has not received an offer to settle the case and is free to proceed to dispute the claims in the class action lawsuit. If they accept the offer to settle the case rather than go to court, they will still have to pay the plaintiffs for their six months of membership fees.

As was discussed above, the class action lawsuit against Rushcard involved misleading statements and lack of disclosure.

On top of that, the class action lawsuit also alleged fraud due to the fact that rushcard did not have the proper authorization to process payments for the members. Even though the class action lawsuit against Rushcard was thrown out, the claims were eventually taken up by the attorney general of Texas. According to them, there was insufficient evidence to support a class action lawsuit against Rushcard. They also pointed out that the original class action lawsuit was filed in Dallas, which is where rushcard operates.

According to the attorney general of Texas, the original lawsuit should have been filed in Houston because that is where the company is headquartered.

Texas law requires companies that do business in the state to register with the state and provide banking information, such as bank account numbers and routing numbers. Rushcard did not register with the state, so it is not a valid company if it does not have a Texas bank account. Further, Texas only allows one class action lawsuit per lawsuit, so the original complaint was invalidated. The attorney general also pointed out that there was insufficient evidence to support monetary damages for the plaintiffs.

In conclusion, it would appear that there was some wrongdoing on the part of Rushcard.

Given the overall lack of damage being sought, there wasn’t a valid case to bring forth against the company. If they had offered a settlement, it would have been much less than their potential profits would have been from the suit. However, given the settlement offer, it seems unlikely they will pursue this any further.

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