California AG Settlement with Wells Fargo

“I just got the word that WF has agreed to a settlement in California.

Basically, you have to bring your payments current thru 12/31/04. That means less than 10% for us and we are happy to end this ordeal.”

(Name With held)

Leasing News read several such e-mails, but we were unable to obtain from the California Attorney's General press department any information about the Wells Fargo settlement here. We had asked the person who wrote the last press release about the USbancorp settlement how many did the settlement effect.

In the release, Attorney General Bill Lockyer said there were over a 1,000 NorVergence lessees in the state. USbancorp did not have that many across the United States. His office has been very slow compared to the other 23 attorneys generals across the United States, including the District of Columbia Popular Leasing update for you.

“Many of the defendants have pending a motion to dismiss for lack of jurisdiction based on due process arguments. Only defendants with NorVergence V.P. Edward Lucas's signature (or stamped signature) on the Equipment Rental Agreements (ERAs) are eligible to file such a motion. Many of the ERAs were signed by E. Buchanan, a Popular Leasing employee. The court held a hearing and took the motion under consideration. About two weeks ago the court requested a list of those defendants who have submitted affidavits stating that they have had no contacts with the State of Missouri. Hopefully this means the court is inclined to grant the motions to dismiss.

“As to federal court Popular Leasing cases in St. Louis, a bad decision was issed a couple of days ago, largely ruling against the defendants. In a footnote, however, the court stated, "Defendants' arguments concerning the [FTC]'s claims against NorVergence can be revisited in the event injunctive relief is granted against the enforcement of its equipment rental agreements."

Ronald J. Eisenberg, Esq.
Schultz & Little L.L.P.
640 Cepi Drive, Suite A
Chesterfield, MO 63005
(636) 537-4645