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Class Action Lawsuit Alleging “Deceptive Trade Practices” in Gold Sales

By on August 31, 2015

On August 6, 2015, attorneys of Steckler LLP filed a class action complaint against U.S. Money Reserve, Inc. and Fidelity Gold & Bullion, LLC in United States District Court for the Central District of California in Los Angeles on behalf of consumers who have made a purchase of commemorative coins since 2005 based on allegedly misleading, deceitful sales tactics. The lawsuit is seeking to enjoin the defendants from further solicitation, restitution damages and punitive damages. *Erica Stux v. U.S. Money Reserve, Inc. and Fidelity Gold & Bullion, LLC; Central District of CA, Los Angeles Division; Case No. 2:15-cv-05955*

The named plaintiff of the class action, Ms. Erica Stux, was allegedly solicited over the phone by the defendant companies 14 times in 7 months, eventually purchasing over $ 250,000 worth of coins. As the named plaintiff in the class action, Ms. Stux is representing herself and others similarly situated.

The complaint further alleged that Ms. Stux and the plaintiffs made these purchases “as investments” after the defendant organizations used “misinformation” to sell the coins. According to the complaint, upon appraisal of Ms. Stux coins, the coins were found to be worth less than 1/3 of what Ms. Stux was asked to pay. In the complaint, Ms. Stux denies being told the market value of the coins was substantially less than the purchase price, the value of the coins would have to double twice to merely recoup their value, or the purchases would not result in any profit if she decided to sell the coins. Rather, the complaint alleges, the defendant companies described gold bullion coin investment strategy, such as gold’s price rising during economic downturns, which is not applicable advice in regards to commemorative coins, which the plaintiffs were sold.

The grounds of the lawsuit are negligence, unjust enrichment, and violation of Cal. Civ. Code § 1950, Cal. Bus. Prof. Code § 17200, and Federal RICO laws (18 U.S.C. § 1960). The RICO grounds allege the defendants engaged in racketeering activities (an advertising and sales campaign of omissions, semi-truths, and misdirection) that affected interstate commerce and used interstate wires and/or mails to further these activities.

Individuals who were granted relief from the U.S. Money Reserve’s 2010 restitution settlement are exempt from the current class action.

For more information contact Steckler LLP though this webpage http://www.stecklerlaw.com/contact-us or call 855-STECKLER (855-783-2553). Morgan & Morgan is currently working with Steckler LLP on this case.

*Erica Stux v. U.S. Money Reserve, Inc. and Fidelity Gold & Bullion, LLC; Central District of CA, Los Angeles Division; Case No. 2:15-cv-05955*

Steckler LLP
12720 Hillcrest Road, Suite 1045
Dallas, TX 75230

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