Systemax Sued by Florida AG

September 8, 2009 By Stephen Silver

multipage

The parent company of CompUSA, TigerDirect and the new CircuitCity.com has been sued by Florida's state attorney general, which charges the company with failure to pay advertised rebates to consumers. The suit specifically names subsidiaries TigerDirect and OnRebate.

In a suit filed Friday, Florida Attorney General Bill McCollum alleged that "rebate requests received by the company often went unprocessed, allowing the offers to expire. Many requests that did get processed were allegedly processed in a haphazard fashion, causing required supporting documentation to be lost in the process and ultimately resulting in denied rebates."

The suit is the result of an investigation that began in 2007, after "numerous" customer complaints. The suit seeks an injunction to prevent further instances of the practice, as well as full restitution to consumers and civil fines.

"The Company denies the allegations in the Florida AG complaint and will vigorously defend itself and its subsidiaries," Systemax said in a statement, adding that the same allegations led to a civil lawsuit two years ago that was dismissed last month.