Lawsuit filed against H&R Block Inc.
It is widely reported by various new organizations, that on behalf of New York State, Attorney General Eliot Spitzer has filed a $250 million fraud suit against H&R Block Inc. today, charging that the company fraudulently steered customers into a losing retirement account plan. The law suit is on behalf of customers who have opened the Express IRA accounts.
The court papers, filed by Attorney General Eliot Spitzer, say that money in the retirement account decreases because the only investment option offered is a money market account with an interest rate so low that it does not cover the fees _ "fees that H&R Block fails to adequately disclose."
The lawsuit asks that the company should stop engaging in any fraudulent practices, and be forced to disgorge profits and pay damages and restitution caused by their scheme, and also that it pay civil penalties of no less than $250 million.
Further reports state that H&R Block said in a statement that it will "fight vigorously to defend the Express IRA product and ensure it remains available to our many clients who rely on it as a helpful savings option."
The news sent H&R Block shares down in trading on the New York Stock Exchange.
The investigation was launched by the attorney general's office around last year after it received information from an H&R Block tax preparer.