OpTree

In the latest development in the YTB case, a judge has ruled that the two class action suits brought against the company last year will be consolidated.

U.S. District Judge G. Patrick Murphy made the ruling last week after hearing from all involved in the case. As we told you a few weeks ago, Judge Murphy was adamant that the two sides find a way to consolidate the case. Judge Murphy told each of the sides last month that he would not hear two parallel cases simultaneously. “We’re not going to be hearing two cases at one time, the judgw said. It makes a lot of sense to file one complaint.” Lawyers in both cases agreed that consolidation of the two suits was appropriate in the case.

YTB, the internet based travel company is being sued by former independent consultants who claim that the company operates an illegal pyramid sales scheme and utilizes an illegal referral sales technique.

Lawyers from each of the two cases will continue to represent clients in individual suits, but will also agree to work jointly as co-counsel on the main class action suit.

No word yet on when exactly the case will be brought back to court but I am sure the company wants to get this resolved already.  With their stock trading at below 50 cents, there doesnt seem to be a lot of good news facing the company.

Popularity: 7% [?]

A judge presiding over two competing class action suits against online travel company, YTB has asked lawyers in each of the two suits to find a way to consolidate the cases.

U.S. District Judge, G. Patrick Murphy told each of the sides last week that he would not hear two parallel cases simultaneously.”We’re not going to be hearing two cases at one time,” the judge said. “It makes a lot of sense to file one complaint.”

The lawyers in each case were given two weeks to come together to figure out a way to come together into one suit. If there is no agreement reached in that time, Judge Murphy will issue an order of his own choosing.

The two suits, one filed in California and one in Illinois are seeking a total of over $100 million dollars in damages stemming from claims that YTB was operating an illegal pyramid scheme and defrauded their independent consultants out of millions of dollars.

Now the lawyers from each case must come together and figure out a way to consolidate the two cases. Not only do they have to choose the fairest way to represent all of those involved, but they must also figure out who will represent the former YTB consultants. The lawyers have also begun to bicker over who will be lead counsel. Even when and if the suits are consolidated, the earliest the two cases will come to trial will be 2010.

YTB of course said that whether there is one suit or two, they will defend themselves vigorously against all charges Jonathan S. Quinn, just one of YTB’s lawyers, said, “The firm has done nothing wrong. The agents were trained to make money by working at home. They could sell travel-related services, such as airline fare, or recruit others to sell travel services. There were two different opportunities to earn money, both valid.”

Pre trial motions in the case will be heard just after the first of the year.

This has been a rough year for the embattled company that continues to try and put 2008 behind them. With recent horrible third quarter results and the sell off of assets, the year can’t end sooner.

Popularity: 9% [?]

YTB International continues to sell off some of its assets to raise money after a disasterous year for the company both legally and financially.

The online travel company announced that they have finally found a buyer for its 1980 Learget 35A that they have been trying to get rid of for a few weeks now. After a deal the Espectra Aviation Inc fell through earlier in the month, YTB will sell the jet to Peterbridge LLC for $1,095,000. This is according to a recent filing with the SEC.  The interesting thing is if you try and find out any information about Peterbridge LLC you will find nothing.  What makes this a little odd is that YTB has a history of “relationships” with vendors and business deals that appear to be very incestuous.  Even a Google search of Peterbridge LLC returns nothing.

Earlier in the month, YTB sold its Edwardsville, ILL office building complete with all of their equipment for $1.5 million dollars to Prestige Management Services. Now the company plans to sell off another one of its buildings. WR Landing LLC will purchase 10 acres of land from YTB. The land is near its Madison County ILL headquarters. The money will come partially from cash and half through a noninterest bearing promissory note. By the way, WR Landing LLC is another company that you cant find any information on.

YTB recently announced terrible third quarter results which were no doubt related to two significant class action suits being brought against the company. Since the lawsuits were announced, YTB has rebuilt its management team, laid off employees, reported dismal earnings and now is selling off its assets. Hopefully the company will be able to pull themselves out of this, but if I worked for the travel company, I would keep a close eye on what is going on.

Popularity: 7% [?]

Repost: St. Louis Business Journal - by Kelsey Volkmann

Ana Temple wanted to make some extra cash to supplement her income as a finance and human resources director for an architectural firm.

So when a family friend told her about YourTravelBiz.com and how she could set up her own online travel agency, she jumped at the chance in April.

She paid nearly $500 to set up a Web site through Wood River, Ill.-based YTB International. The company told her she’d make 60 percent commission off every trip she booked.

But then she got her paycheck: $3 per airline ticket.

That’s when the company told her travel agents make 60 percent of what YTB makes, she said.

“I feel so deceived,” said Temple, a Copiague, N.Y., resident. “They told us people could retire off this and take free trips. It’s all a bunch of bull.”

On Monday, the California attorney general sued YTB, calling it a “gigantic pyramid scheme” that swindled an estimated $103 million out of as many as 200,000 people nationwide in 2007 alone. The majority of members make most of their money from recruiting new members, not from selling travel, so only a few see the promised profits, Attorney General Jerry Brown Jr. said.

More than 90 people over the past three years have complained about YourTravelBiz.com to the Better Business Bureau of eastern Missouri and southern Illinois.

YTB denies any wrongdoing.

Several YTB agents vigorously defended YTB at the company’s national convention in St. Louis this week, saying they had made money and received discounts on personal travel.

“That’s because they got thousands of suckers underneath them and they’re making money off us,” said Temple, 38.

When she tried to cancel, YTB refused, saying it was past the five-day cancellation period. But Temple said she didn’t receive her packet informing her of the cancellation policy until after the five- day period expired.

YTB denied this and she was still required to read the online terms and conditions before paying.

“They gave us so much false information,” she said. “Total, total lies.”

Popularity: 3% [?]