USA: another law suit filed by former YTB affiliates

A number of former affiliates filed a third version of their complaint against YTB in the U.S. District Court for Southern Illinois. The former YTB referring travel agents (RTAs) have charged they were induced to join an illegal pyramid scheme. They claim current and former affiliates have suffered damages of more than $100 million. In two cases brought previously they have not convinced Judge Patrick Murphy that the charges can be based on a consumer protection law because the case involves business-to-business dealings.

Source: Travel Weekly; find article here>>.

Also see previous postings of June 10, 2009 and May 19, 2009.

USA: travel agents' class action against YTB partly dismissed

Although the U.S. District Court in Illinois did not dismiss the case outright, it granted parts of YTB’s motion to dismiss a class action brought against the multilevel marketing travel company by former referring travel agents, who charged that YTB operated an illegal pyramid system.

The court dismissed allegations against YTB subsidiary Rezconnect and its CEO, Michael Brent, on grounds that the court did not have jurisdiction over the New Jersey-based business.

Source: Travel Weekly; find article here>>.

Illinois: another law suit aganist YTB

The Califonia law suit was barely setteled when Illinois Attorney General Lisa Madigan filed a similar law suit against YTB: again YTB is charged with operating an "unlawful pyramid sales scheme." Illinois charged that YTB violates the state’s Consumer Fraud Act by misrepresenting that it is a travel agency "when in fact the primary function of the business is building a downline." Illinois is seeking civil penalties of $50,000 for each violation of the Consumer Fraud Act.

Source: Travel Weekly; find article here>>.