Case Initial Text 1

United States District Court Judge Benjamin Settle issued a $1.45 billion default judgment. Judge Settle granted plaintiffs’ motion for class certification and default final judgment against the Tacoma, WA company after Meracord ceased defending itself from plaintiffs’ claims.

Case Status
Settled
Court
U.S. District Court for the Western District of Washington
Case Number
11-cv-05574
Defendant(S)
Noteworld, LLC
File Date

Hagens Berman has filed a lawsuit on behalf of consumers against Noteworld, LLC (“Noteworld”), claiming the Tacoma, Wash. company has violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”) by engaging in a conspiracy to defraud consumers by extracting exorbitant fees from trust accounts related to useless debt-settlement plans.

According to the lawsuit, Noteworld, which has since changed its name to Meracord, purports to act as an independent fiduciary, independent from front-end debt settlement companies (“front DSCs”). In reality, the complaint argues, the front-DSCs use predatory tactics to sign up distressed borrowers for debt settlement plans, and then Noteworld conspires with the front DSCs to loot consumers’ settlement accounts through exorbitant fees, leaving little or no money for actual settlements.

NoteWorld/Meracord has now ceased all business operations and is essentially insolvent. Hagens Berman is continuing its efforts to recover consumers’ losses from NoteWorld’s surety bonds that were obtained as required by the licensing boards of several states. Pursuant to a settlement agreement with NoteWorld, its remaining monetizable asset, a promissory note for several hundred thousand dollars, has been placed in trust for the benefit of potential class members. NoteWorld has ceased defending itself from Plaintiffs’ claims and it has defaulted in the defense of the lawsuit. Hagens Berman has asked the Court to enter a default judgment against NoteWorld/Meracord and certify a class of consumers who lost money in the NoteWorld/Meracord scheme.  If judgment is obtained, Hagens Berman will seek partial payment of the judgment pursuant to the surety bonds.

Case Timeline
Title
$1.45B Default Judgment Issued
Description

United States District Court Judge Benjamin Settle issued a $1.45 billion default judgment. Judge Settle granted plaintiffs’ motion for class certification and default final judgment against the Tacoma, WA company after Meracord ceased defending itself from plaintiffs’ claims.

Date

CASE TIMELINE

$1.45B Default Judgment Issued

United States District Court Judge Benjamin Settle issued a $1.45 billion default judgment. Judge Settle granted plaintiffs’ motion for class certification and default final judgment against the Tacoma, WA company after Meracord ceased defending itself from plaintiffs’ claims.

Hagens Berman purchases advertisements on search engines, social media sites and other websites. Transmission of the information contained or available through this website is not intended to create, and receipt does not constitute, an attorney-client relationship. If you seek legal advice or representation by Hagens Berman, you must first enter a formal agreement. All information contained in any transmission is confidential and Hagens Berman agrees to protect information against unauthorized use, publication or disclosure. This site is regulated by the Washington Rules of Professional Conduct.