A recent court filing in the Brookstone Law and Advantis Law case filed by the Federal Trade Commission seem to give us some tea leaves to read on how this might play out in court.
For those not familiar with the Brookstone Law mess/history, click here to catch up.
The Judge in this case said, “There is good cause to believe that defendants Geoffrey Broderick, Brookstone Law P.C. (California), and Brookstone Law P.C. (Nevada), have engaged, and are likely to continue to engage, in acts or practices that violate Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), including but not limited to falsely and misleadingly representing, directly or indirectly, expressly or by implication that:
- Defendants are likely to obtain relief for consumers, including in some instances “at least $75,000” or consumers’ homes free and clear;
- Defendants will seek to void consumers’ mortgages;
- Defendants have a team of experienced lawyers and personnel to litigate mass joinder cases alleging lender fraud and related claims on behalf of hundreds or thousands of clients simultaneously; and
- Defendants will file lawsuits on particular consumers’ behalf.”
The Court goes on to say, “The FTC is therefore likely to prevail on the merits of its action under Section 5(a)” and “of the FTC Act, 15 U.S.C. § 45(a). The FTC is therefore likely to prevail on the merits of its action under the MARS Rule, 12 C.F.R. Part 1015.”
Maybe more than some tea leaves, that’s a freaking billboard.
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