May 3, 2010

Attorney files “class action” lawsuits with direct response companies with no “victims” besides himself

Posted by Wendy Weber

In this month’s Legal Review column of Response Magazine, Andrew Lustigman and Scott Shaffer report on a shocking practice on the part of attorney Harold Hoffman. Hoffman is a practicing attorney in New Jersey that has filed dozens of putative “class action” lawsuits in which he is the only victim. His modus operandi is to name himself as the plaintiff, file the cases in New Jersey state court, and target nationwide direct marketers for anything from product efficacy claims to shipping charges.

Hoffman typically orders a marketer’s product and then files a complaint shortly thereafter – sometimes even before receiving the item!

His behavior is allegedly aimed at prompting defendants to settle under the threat of a potential class action certification, with settlement demands as high as $100,000.

Because of the high cost of litigation, many marketers end up making confidential settlement payments in exchange for dropping the class actions. The article indicates that the authors are unaware of Hoffman ever successfully certifying a class or obtaining relief for anyone other than himself.

It further alleges that Hoffman has filed complaints only a day after placing an order – before even receiving it!

Troublemakers like Hoffman make life difficult for honest companies in our industry. I hope his unethical practices will soon be halted.

In