YourTravelBiz asks for status conference on class action suits in California and Illinois
An attorney for YourTravelBiz.com International (YTB) has called on a federal judge to set a status conference in class actions that allege YTB is an illegal pyramid scheme, according to The Madison County Record, a weekly legal journal covering the Madison and St. Clair County Civil Courts, in Illinois.
The publication said that YTB's attorney, Judy Cates of Swansea, has argued that a status conference is necessary to co-ordinate defendants' responses to the two complaints filed against YTB.
According to Ms Cates, the separate actions have been substantially similar, it said.
In August, The Royal Gazette reported that 700 Bermudians signed up to YTB with the dream of making a fast buck could be set to lose out after California Attorney General Edmund Brown filed a lawsuit to shut down the travel website.
In a statement on the State of California's Office of the Attorney General webpage, Mr. Brown alleged that YTB operated a "gigantic pyramid scheme" that recruited tens of thousands of members with deceptive claims that members could earn huge sums of money through its online travel agencies.
And former United Bermuda Party leader Wayne Furbert, who set up his own affiliated business last year, was at YTB's US national convention in St. Louis in August, along with 20,000 people, including 44 Bermudians.
Fellow Bermudian Kenneth Minors, based in Lexington, Kentucky, also contacted The Gazette last year to tell the paper about the franchise of YTB Travel, of Illinois, called Minors Travel, which he runs, in a bid to target business in the Bermuda market.
The Madison County Record said that Faye Morrison and Kwame Thompson filed one of the suits August 8, seeking to represent a putative class who allege YTB operates an illegal pyramid sales scheme and employs an illegal chain referral sales technique in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act.
Ms Morrison, of St. Louis and Mr. Thompson, of Atlanta, acted as both independent marketing representatives and referring travel agents for YTB.
Their suit seeks at least $100 million in damages on behalf of the putative class, according to the publication, which said that Ms Morrison and Mr. Thompson have retained Rex Carr, Christian Montroy and Michael Marker of East St. Louis to represent them. In addition, Jay Kanzler Jr., and Brian Massimino of St. Louis will assist in representing the class.
According to its website, YTB provides Internet-based travel booking services for travel agencies and home-based independent representatives in the US, Puerto Rico, Bermuda, the Bahamas, the US Virgin Islands, and Canada.
The company operates through three subsidiaries, YourTravelBiz.com Inc., YTB Travel Network Inc., and REZconnect Technologies Inc., all of which are also named as defendants in the case.
The Madison County Record said the second class action against YTB and its subsidiaries was filed by Jeffrey and Polly Hartman. Their suit is almost identical to the first class action, however they are represented by different lawyers, filing their case seven days after the first one.
John Carey, Tiffany Marko and Francis Flynn of Carey & Danis in St. Louis represent the Hartmans.
Ms Cates has argued that holding a status conference in both cases would "ensure the orderly consideration of the likely motions to dismiss", said the publication.
"Plaintiffs will suffer no prejudice if the Court grants this Motion," she wrote.
US District Judge G Patrick Murphy agreed, and on November 21, set a status conference for December 8.