Pearson, Simon, Soter, Warshaw & Penny LLP ("PSSWP") has filed a class action lawsuit against the nations leading provider of home warranties, American Home Shield Corporation ("AHS"). PSSWP complaint filed in the Central District of California alleges that AHS has systematically engaged in deceptive and unconscionable practice of, (1) denying valid claims for repairs by customers, and (2) advertising and selling an illusory "upgrade" program to customers.
Specifically, it is alleged AHS has engaged in a long-standing systematic practice of delaying and denying valid claims for repairs by falsely claiming that customers had failed to maintain their appliances and repairs fell outside the scope of their home warranty. The lawsuit further alleges that since the spring of 2006, AHS has advertised and sold an unnecessary "upgrade" program by falsely claiming the "upgrade" was necessitated by recent changes to United States Department of Energy regulations on fuel efficiency for newly manufactured air conditioners.
The lawsuit is brought on behalf of all persons in the State of California who either, (1) failed to receive covered services from AHS despite paying a service fee, or (2) purchased a 13 SEER warranty "upgrade" as a result of Defendants misleading representations. It alleges Defendants conduct constitutes Unfair Competition Law (Cal. Bus. & Prof. Code § 17200 et seq.), breach of contract, unjust enrichment, fraudulent misrepresentation, concealment, and negligent misrepresentation.
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