Hubbard & Biederman LLP
A-1 Leasing Class Action Settlement
After a tentative settlement was reached with A-1 Leasing, LLC and Bond Corporation, the United States District Court for the Eastern District of Texas preliminarily certified a settlement class of:
All Persons Who Were Solicited By Any Of USA Merchant Systems, Inc. d/b/a USA Card Services, Inc., Startup Essentials And National Business Advisers; James One GP, LLC; James One Holdings, L.P., d/b/a USA Card Services Inc., Startup Essentials, National Business Advisers, And Startup Essentials, Llc; Startup Essentials, L.L.C.; James One Merchant Solutions, L.P. d/b/a National Business Advisers and James One or Robert Harris ("Harris Defendants") and entered into a lease with A-1 Leasing, LLC and/or Bond Corporation ("A-1 Defendants").
The Harris Defendants were included as defendants in this lawsuit, but the Harris Defendants are not a party to this Settlement. Claims against the Harris Defendants are being litigated separately. For information on the class action against the Harris Defendants, click here.
The Litigation
Plaintiff, Sharon Hubbard ("Class Plaintiff") filed this class action challenging what she characterized as a telemarketing scheme in which Plaintiff alleges the Harris Defendants promoted startup business opportunities in connection with equipment leases issued by the A-1 Defendants. Plaintiff filed this lawsuit seeking cancellation, restitution, and damages for all Class Members based upon (1) the fraudulent sales of leases; (2) Defendants' failure to register as telemarketers under the Texas Telephone Solicitation Act; (3) Defendants' failure to register under the Texas Business Opportunity Act; and (4) violations of the Tex. Bus. & Comm. Code ยง 35.53. The A-1 Defendants deny all allegations of wrongdoing and further claim that they cannot be held liable for the acts of the Harris Defendants.
The Court did not decide in favor of the Class or Defendants. Instead, the Class Plaintiff and the A-1 Defendants have agreed to a settlement. Based on their investigation, the Class Plaintiff and Class Counsel believe that this lawsuit should be settled, because (i) the proposed settlement is fair and reasonable, provides significant benefits to the Class, and is in the best interests of the Class, and (ii) the uncertainties of the litigation.
While denying any wrongdoing and denying the Class's allegations, the A-1 Defendants have agreed to this settlement based on (i) the uncertainty and substantial costs of class action litigation; (ii) its desire to put to rest the Class's claims and end the expense and disruption caused by the defense of this lawsuit; and (iii) because the proposed settlement is fair and reasonable.
The Settlement
If You Were Current on Your Payments to A-1/Bond as of May 1, 2008
All Class Members who were current in their payments on their lease with A-1 as of May 1, 2008 are eligible to apply for the settlement credit. If eligible, the proposed settlement provides credits for the last three monthly payments of your lease. The total value of the relief being offered to the Settlement Class is approximately $2.4 million. Class Members, who are entitled to these benefits, must complete and mail the Claim Form attached to the Notice legibly and in full, together with a complete copy of their lease agreement with the A-1 Defendants to the specified address no later than September 22, 2008.
In consideration for the benefits provided by the settlement, Class Members release the A-1 Defendants of all claims related to the Litigation. A full version of the release is included as Exhibit A to the Notice.
If You Were Not Current on Your Payments to A-1/Bond as of May 1, 2008:
All Class Members who were not current in their payments on their lease with A-1 as of May 1, 2008, are eligible to apply for the settlement credit of three monthly lease payments by (1) completing and mailing the attached Claim Form, together with a complete copy of their lease agreement with the A-1 Defendants to the specified address no later than September 22, 2008 and (2) curing their default pursuant to the terms of their lease agreement with the A-1 Defendants prior to submitting the Claim Form attached to the Notice. Unless Class Members who were not current in their payments on their lease with A-1 as of May 1, 2008 take the above steps, those Class Members are not eligible to receive any credits to their lease payment account.
In consideration for the benefits provided by the settlement, the claims against the A-1 Defendants in this lawsuit are being dismissed; however, the A-1 Defendants do not release and in fact retain any claim(s) the A-1 Defendants may have against you. Correspondingly, as a Class Member, you do not release any rights to individually defend any collection action by the A-1 Defendants and to assert any defenses or counterclaims to such collection action including alleged offsets for claims that are otherwise being released in this Settlement. Furthermore, relevant statutes of limitations are tolled for any defensive matter or counterclaim. A full version of the release is included as Exhibit A to the Notice.
You may view the following documents in connection with this case:
- Notice of Class Action, Proposed Settlement, and Settlement Hearing
- Order Preliminarily Certifying Class for Settlement Purposes Only, Appointing Lead Counsel For The Class, Directing Issuance of Class Notice to The Class, and Scheduling Fairness Hearing
- Settlement Agreement
- Plaintiff's Third Amended Complaint
- Defendants A-1 Leasing, LLC's and Bond Corporation's Amended Answer To Plaintiff's Third Amended Complaint