Roth Jackson attorneys were instrumental in the settlement of a landmark lawsuit brought by the Federal Trade Commission and Ohio Attorney General that resulted in favorable settlement terms for its clients and the release of companies from receivership.
The FTC and State of Ohio initiated the lawsuit against Prolink Vision, SRL, 9896988 Canada and its individual officers by obtaining an asset freeze and temporary restraining order for alleged violations of the Telemarketing Sales Rule, and placed the entities in receivership before being served with notice of the lawsuit. The litigation subsequently expanded to include several VoIP carriers who were alleged to have knowingly assisted and facilitated the violators by carrying the bad calls. The carriers were also placed into receivership.
The FTC and State of Ohio quickly met an aggressive and effective defense mounted by the Roth Jackson attorneys that challenged the FTC and State of Ohio each step along the way.
The US District Court for the Western District of Texas entered a consent order on September 22, 2020, which effectively concluded the year-long litigation. Roth Jackson attorneys Mitchell Roth, Genevieve Bradley, and Gregory Caffas obtained very favorable settlement terms for their clients. Additionally, in what may be a first of its kind, the settling VoIP carriers were released from receivership and their control and profits were returned to their shareholders.
Mitchell Roth, CEO of Roth Jackson and a member of the litigation team, described the litigation as “intense.” “It was a case that had it all. We filed a motion for sanctions against the government, and an interlocutory appeal to the 5th Circuit. I guess sometimes the best defense really is a strong offense. In any event, we are glad that our clients obtained a favorable settlement and that the companies are out of receivership. I do not recall a situation where a company actually exited receivership and was returned to its shareholders. It is a favorable settlement for all parties,” Roth said.
Genevieve Bradley was the lead litigation attorney for Roth Jackson. Following entry of the settlement, she stated: “This is a particularly great result for our clients because people do not realize what an underdog spot you start in when government files its lawsuit. In this case, there had already been an ‘investigation’ and an ex parte hearing granting an emergency injunction by the time our client got word of the case and retained us.”
The case is Federal Trade Commission, et. al. v. Educare Centre Services, Inc., et. al., U.S. District Court for Western District of Texas, Case No. 3:19-CV-196.
For inquiries, contact Mitchell Roth, mroth@rothjackson.com
