NEW YORK, Aug. 21 /PRNewswire/ -- Wolf Popper LLP and Napoli Bern
Ripka, LLP, attorneys for plaintiffs, report that the United States
District Court for the Eastern District of New York has substantially
denied defendants' motions to dismiss plaintiffs' class action complaint
charging Jackson Hewitt Tax Service Inc. (NYSE: JTX) and certain of its
franchises with deceiving its customers by charging hidden fees. In the
action entitled Watts, et al. v. Jackson Hewitt Tax Service Inc., et al.,
06-cv-6042 (DLI) (SMG), plaintiffs allege that Jackson Hewitt advertises
minimum prices for long form and short form tax returns, and that, although
Jackson Hewitt claims that the prices are subject to change based on the
complexity of the complaint, it charges customers various hidden fees
unrelated to the complexity of the complaint. Plaintiffs allege that
Jackson Hewitt hides the fees by labeling them as a "Tax Preparation" fee
in the final billing statement submitted to customers. The fees include an
automatic 15% multiplier fee for income tax returns, additional charges in
connection with the purchase of a refund anticipation loan or an
accelerated check refund, and additional charges for the preparation of a
state long form tax return even if the customer qualifies to file a less
expensive state short form tax return. The Court rejected defendants'
motions to dismiss the case. The Court held that "[b]y luring customers
away from competitors with low advertised prices as well as extracting
higher fees and royalties through the hidden charges, defendants stood to
derive concrete benefits from the alleged practices." The Court has not
decided the merits of the claims or defenses.
For more information please contact:
Wolf Popper LLP
James Kelly-Kowlowitz, Esq.
845 Third Avenue
New York, NY 10022
Tel.: 212.451.9635 or 877.370.7703 (toll free)
Fax: 212.486.2093 or 877.370.7704 (toll free)
Email: irrep@wolfpopper.com
website: http://www.wolfpopper.com
Napoli Bern Ripka, LLP
W. Steven Berman, Esq.
350 5th Avenue
Suite 7413
New York NY 10118
Tel.: 212.267.3700 or 888 LAW IN NY (toll free)
Fax: 212.486.2093 or 877.370.7704 (toll free)
Email: WSBerman@nbrlawfirm.com
website: http://www.napolibern.com
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SOURCE Wolf Popper LLP
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Related links:
http://www.wolfpopper.com
http://www.napolibern.com
CONTACT:
Wolf Popper LLP, James Kelly-Kowlowitz, Esq.,
+1-212-451-9635 or +1-877-370-7703 (toll free), Fax:
+1-212-486-2093 or +1-877-370-7704 (toll free),
irrep@wolfpopper.com; or Napoli Bern Ripka, LLP, W. Steven
Berman, Esq., +1-212-267-3700 or 888 LAW IN NY (toll free), Fax:
+1-212-486-2093 or +1-877-370-7704 (toll free),
WSBerman@nbrlawfirm.com
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