TaxMasters Class Action Report
The Spencer Law Firm is pleased to report the recent progress made in a lawsuit it has filed on behalf of its clients against TaxMasters and its owner, Patrick Cox. In November the Plaintiffs filed their motion asking the United States District Court for the Southern District of Texas to certify the case as a class action. On January 20, 2012, the TaxMasters defendants filed their response to the motion. The Spencer Law Firm expects that the Court will make its ruling on this motion in the next couple of months.
If the case is certified as a class, Plaintiffs will represent all individuals who did not sign a contract with TaxMasters but from whom TaxMasters nonetheless took money during the class period through credit card charges or direct bank withdrawals. Plaintiffs allege that TaxMasters failed to publicly disclose significant information about its business and that if TaxMasters had disclosed this information, the individuals who make up the class Plaintiffs seek to represent would never have provided TaxMasters their financial information in the first place, which TaxMasters then used to take money from these individuals.
Plaintiffs are in the process of obtaining documents from TaxMasters and are preparing to take the sworn depositions of its important officers and employees. The Spencer Law Firm looks forward to the next opportunity to update the public on this important consumer protection case.