On December 23, 2024, the U.S. District Court for the District of Kansas granted our clients’ motion for summary judgment in a class action lawsuit in which our clients were accused of violating the Credit Repair Organizations Act (“CROA”). The Court’s ruling ended the lawsuit and exonerated our clients as to all claims filed against them, including a claim seeking to hold the company’s owner individually liable.
The lawsuit originated from work performed by our clients under an agreement with the plaintiff. After years of litigation, the Court’s ruling confirmed that our clients did not violate CROA’s advance payment restrictions and had fully performed their promised services before accepting payment from the plaintiff. In a 21-page opinion, the Court also held that the plaintiff did not have standing to sue our clients and granted summary judgment in our clients’ favor on plaintiff’s CROA claim. The Court had previously dismissed a variety of other claims, including claims alleging that our clients breached fiduciary duties.
TDR attorneys Timothy Hudson, Jordan Wilkow, Elizabeth Coburn, and Jeffrey Grinde obtained this result on behalf of our clients.