"Thousands of consumers - or perhaps hundreds of thousands - were ripped off by Whirlpool and Service Net when those companies did not repair or replace faulty appliances per the terms of the service contracts."
Stamford, CT (PRWEB) January 09, 2012
Lemberg & Associates LLC has filed an amended class action complaint on behalf of a client that alleges that Whirlpool Corporation, which has merged with Maytag Corporation, and Service Net Warranty engaged in deceptive and unfair trade practices regarding the companies' service contracts. According to attorney Sergei Lemberg, "Thousands of consumers - or perhaps hundreds of thousands - were ripped off by Whirlpool and Service Net when those companies did not repair or replace faulty appliances per the terms of the service contracts."
According to the amended class action complaint, when he purchased his Maytag clothes dryer, the plaintiff also bought a three-year service contract that promised to repair or replace the appliance if it failed. The complaint states that it also gave the warrantor the option of "buying out" the contract by either refunding the original purchase price less the amount of claims paid, or replacing the dryer with a comparable product. Instead of refunding the original purchase price or replacing the dryer, the complaint alleges that the defendants told the plaintiff that he was only entitled to a refund for the present value of the dryer, minus the cost of the repairman's visit. According to Lemberg, "That is absurd, since the point of buying a service contract is to avoid the cost of repair."
The plaintiff alleges that Maytag, which was subsequently purchased by Whirlpool, and Service Net Warranty, which administers the service contracts, failed to fulfill the terms of the service contract by improperly administering buy-outs. As such, the suit alleges that the his dryer's buy-out, and buy-outs given to similarly situated consumers, constituted breach of contract, unjust enrichment, and a violation of the federal Magnuson-Moss Warranty Act.
Lemberg concludes, "Consumers purchase service contracts to ensure that they will be protected should an appliance need repair or replacement. Corporations and service contract providers need to be held accountable to the terms of the service contracts. On behalf of our client, we are determined to do whatever it takes to give consumers who have been victimized an avenue of redress."
This release references Sherman v. Maytag Corporation, Whirlpool Corporation, and Service Net Warranty, LLC (U.S. District Court, District of Connecticut, 3:11-cv-01010-JBA).
About Lemberg & Associates, LLC
The attorneys at Lemberg & Associates, LLC practice in New York, Connecticut, Massachusetts, Texas, Mississippi, Louisiana, Maine, New Hampshire, New Jersey, Ohio, Nevada, Arizona, Colorado, North Carolina, Pennsylvania, California, Maryland, Illinois, and Washington, D.C. Sergei Lemberg can brief you about consumer law, remedies available to consumers who are victims of service contracts, and other relevant issues.
For more information, contact:
Lemberg & Associates, LLC
slemberg (at) lemberglaw.com