November 03, 2009 12:13 ET

Milberg LLP Announces the Filing of a Consumer Fraud Action on Behalf of DirectBuy Members

NEW YORK, NY--(Marketwire - November 3, 2009) - A consumer fraud action was filed against DirectBuy, Inc., ("DirectBuy") DirectBuy Holdings, Inc. and United Consumers Club, Inc. on October 29, 2009, in the United States District Court for the Southern District of Indiana. The action alleges consumer fraud, fraud, and unjust enrichment during the period October 29, 2003 through the present ("Relevant Period"). Brian Vance v. DirectBuy, Inc. et al. and is numbered 1:09-cv-1360.

As alleged in the complaint filed by Milberg LLP, DirectBuy is a purchasing club which charges consumers thousands of dollars in membership fees. In return, DirectBuy tells consumers that they will not have to pay a mark-up on merchandise, and will instead be charged the same wholesale price DirectBuy pays for goods. DirectBuy justifies its high membership rates by representing to consumers that DirectBuy only makes money from the membership fees. According to the complaint, however, contrary to these representations, DirectBuy receives millions of dollars in discounts, rebates, and other perquisites from suppliers, which it does not pass on to its members.

The complaint has been filed as a class action on behalf of all persons in the United States who joined DirectBuy on or after October 29, 2003. However, no class has yet been certified, and there can be no guarantee that a class will be certified.

Contact Information

  • If you have any questions about this action, you may contact Andrei Rado or
    Stephanie Hatzakos at:

    Milberg LLP
    One Pennsylvania Plaza, 49th Fl.
    New York, NY 10119-0165
    Phone number: (800) 320-5081

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