Pa. attorney general sues fitness chain over closures
HARRISBURG — Pennsylvania's attorney general on Thursday sued a national weight-loss chain and its owner over business practices at the company that suddenly closed down last month.
The Commonwealth Court lawsuit accuses Pure Weight Loss Inc. — formerly known as L.A. Weight Loss Centers Inc. — and company owner Vahan Karian of deceptively selling long-term contracts to customers.
One store, L.A. Weight Loss, was located in Moraine Pointe Plaza.
Aggressive sales were conducted over the past several months, even as the Horsham-based company faced mounting financial difficulties, according to Attorney General Tom Corbett.
The company is accused of taking prepayments from unwitting customers for four days after it posted a notice on its Web site in mid-December that about 400 stores were closing, including 47 in Pennsylvania.
The attorney general's office has fielded more than 850 claims from people believed to have collectively lost nearly $500,000, and claims continue to come in. Their average loss is $880, and some are out more than $2,000, Corbett said.
The lawsuit also accuses the company of offering its former customers misleading and deceptive "special offers" with other weight-loss companies that are no better than deals being sold to all other customers. It accuses Karian of misappropriating company funds and property and seeks restitution and civil penalties.
Pure Weight Loss filed for bankruptcy protection Jan. 11, listing liabilities of $10 million to $50 million and assets of less than $10 million.
