Latest Posts
Home > Debt Relief Industry > Persels & Associates Appears to Discover Millions of Dollars. CareOne Facing Bankruptcy?

Persels & Associates Appears to Discover Millions of Dollars. CareOne Facing Bankruptcy?

Back in September, 2011 a class action lawsuit in Florida resulted in a very disappointing settlement for consumers. Basically consumers received no compensation and lost their rights, (here). People complained about the proposed and final settlement but to no avail.

In the Florida case Neil Ruther from Persels & Associates said they could not fund a big settlement. “In order to fund the settlement now before this Court, Persels has been required to rely upon co-defendant CareOne providing several hundred thousand dollars. Persels does not currently have the financial resources to fund this settlement alone.” – Source

According to Katherine Earle Yanes of Kynes, Markman & Felman who represent the consumers in this case, Persels & Associates was incapable of funding a financial settlement. “the course of the settlement discussions, the parties also engaged in informal discovery regarding both merits and class certification issues. In the course of this informal discovery process, the Law Firm Defendants additionally provided information regarding their financial condition. The information provided both made it clear that the Law Firm Defendants lacked the resources to fund a substantial settlement and made Class Counsel concerned that the Class would be unable to collect a substantial judgment from the Law Firm Defendants should one be awarded.” – Source

So now flash forward to today, just six months after the final settlement in that class action suit above. In a State of Washington case against Persels & Associates, CareOne and Amerix the following information came to light in court documents, “During mediation, Defendants also disclosed that they are struggling financially and that the CareOne Defendants presently face a potential arbitration award that may result in a judgment against CareOne for several hundred million dollars and bankrupt CareOne. Plaintiffs’ counsel called the counsel opposing CareOne in the arbitration proceedings and confirmed that CareOne was indeed potentially liable for this amount. Thus, Defendants may not be able to satisfy a large judgment.” – Source

But here is the kicker. The court document says that in this class action suit, instead of consumers getting nothing, they are actually getting $2,200,000 to settle the claims. The court documents say that Washington State consumers should receive “more than thirty-three percent of total fees they paid.”

The Settlement Proceeds cover a payment of $1,540,000 to the Class; a payment of $650,000 to Class counsel for statutory attorneys’ fees, costs, and notice and claims administration expenses. – Source

Persels & Associates Appears to Discover Millions of Dollars. CareOne Facing Bankruptcy?
Get Out of Debt Guy – Twitter, G+, Facebook

Persels & Associates Appears to Discover Millions of Dollars. CareOne Facing Bankruptcy? by

Share This and Spread the Word

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.