Jul 052009
 July 5, 2009  Posted by  Business, Court, Featured News, U.S.

A group of consumers has filed a class action lawsuit against Verified Identity Pass (VIP) after the company refused to provide refunds to members of its popular Clear program, which reduced security wait times for consumers willing to pay an annual fee and undergo preemptive security screenings.

Clear closed on June 22 after a dispute with a senior creditor. Lead plaintiff Stephen Perkins received an e-mail saying that, because of financial constraints related to the credit problem, VIP could not issue refunds to existing customers.

The suit, filed in New York by San Francisco law firm Schneider Wallace Cottrell Brayton Konecky, alleges that VIP continued charging customers until the minute it shuttered its doors, and that it has since refused to reimburse passengers. The suit calls Clear a “cut-and-run gambit,” and alleges counts in conversion, fraud, breach of contract, negligence and unjust enrichment. The plaintiffs are seeking both compensatory and punitive damages.

Read more on Consumer Affairs.

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