UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
FORT WORTH DIVISION
FEDERAL TRADE COMMISSION, )
)
Plaintiff, )
)
v. ) CIVIL ACTION NO. 4-98CV-0143A
)
AMERAPRESS, INC., et al., )
)
Defendants. )
COMPROMISE, RELEASE AND SETTLEMENT AGREEMENT
WHEREAS, Plaintiff, the Federal Trade Commission ("FTC" or
"Commission"), commenced this action by filing a Complaint pursuant to Section
13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. ss. 53(b) ; and
WHEREAS, the Defendants answered and denied all material allegations
and filed a Counterclaim alleging certain causes of action; and
WHEREAS, the Commission and Defendants have agreed to the entry of an
Agreed Final Order by the Court, in the form attached hereto as Exhibit 1, in
order to resolve all matters in dispute between them in this action; and
WHEREAS, the Commission and Defendants have consented to entry of this
Agreed Final Order without trial, and it is stipulated that Defendants, by
agreeing to the entry of this Agreed Final Order, do not admit to any violation
of any law, statute, rule or regulation or to the commission of any wrongful
act, and the Commission, by agreeing to the entry of this Agreed Final Order,
does not admit to any violations of law, statute, rule or regulation, or to the
commission of any wrongful act,
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but instead denies any violations or wrongdoing.
I.
For the purpose of this Agreement, the term "Defendants" means
AmeraPress, Inc. ("AmeraPress"), Voxcom Sales, LLC, The Home Business Group,
Inc. ("HBG"), Xxxxxxxx X. Xxxxx, Xx., Xxx Xxxxxxxx and Xxxxxx X. XxXxxxxx, as
well as Vendworx, Inc. ("Vendworx"), Xxxxx Xxxxxx, Xxxxxx Xxx, and Xxxxx Xxxxx,
as additional parties the Commission sought leave to add as Defendants to the
lawsuit (but which leave the Court denied), whether acting directly or through
any entity, corporation, subsidiary, division, or other device.
II.
IT IS XXXXXX AGREED that Defendants will pay the sum of FOUR HUNDRED
THOUSAND DOLLARS ($400,000.00), on or before May 15, 1998, to be used by the
Commission to pay refunds to consumers of AmeraPress' goods and services,
including those whose refunds have been previously approved, but not paid, by
AmeraPress as of April 6, 1998. Defendants will pay an additional SIXTY-FIVE
THOUSAND DOLLARS ($65,000.00) on or before May 15, 1998 which will be used by
the Commission to pay refunds to consumers of HBG's goods and services,
including those whose refunds have been previously approved, but not paid, by
HBG as of April 6, 1998. Defendants will also pay to the Commission THIRTY-FIVE
THOUSAND DOLLARS ($35,000) on or before May 15, 1998 which may be used by the
Commission for consumer redress or its administrative expenses in connection
herewith. These payments are being made in order to compromise and settle this
lawsuit.
III.
As consideration for the agreements recited herein, the Federal Trade
Commission hereby
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releases the Defendants, each of their officers, agents, employees,
representatives, shareholders, attorneys and board members from any and all
liability, whether known or unknown, which was or could have been raised in the
lawsuit referenced above for any acts or omissions regarding the advertising,
offering for sale, licensing, contracting, sale, or other promotion of a
business venture by AmeraPress, HBG, and/or Vendworx up to and including the day
on which this agreement is signed. The parties intend this to be a global, all
encompassing release.
IV.
IT IS FURTHER AGREED that, within five business days after receipt of
the Agreed Final Order as entered by the Court, each Defendant shall submit to
the Commission a truthful sworn statement that shall acknowledge receipt of the
Agreed Final Order, noting date of receipt and attaching a copy of the Agreed
Final Order received.
V.
IT IS FURTHER AGREED that if the Commission, in its sole discretion,
determines that redress is wholly or partially impractical, any funds not so
used shall be deposited in the United States Treasury. The Commission, in its
sole discretion, may use a designated agent to administer consumer redress, and
may in its sole discretion extend the deadline for accepting claims. Defendants
waive any right to contest the disposition of the funds paid pursuant to the
terms of this Agreement. All payments made to consumers as described herein
shall be conditioned on consumers releasing Defendants for all claims related to
the purchase of goods and services from Defendants. Defendants agree to
cooperate with the Commission, as the Commission may request, in the
administration of any redress procedures, and upon request agree to review and
product information concerning the validity of consumer redress claims made. The
Commission agrees to provide to
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Defendants AmeraPress and HBG lists of consumers accepting payment from the
funds, and copies of the front and back of the checks by which consumers have
been paid, showing the name and address of the consumer, the amount of payment
and the signature on the release.
IV.
IT IS FURTHER AGREED that each of the notices any party is required to
give to another pursuant to this Agreement shall identify this action by its
name and case number, and be addressed: (1) if to the Federal Trade Commission,
to: Associate Director, Division of Marketing Practices, Federal Trade
Commission, Washington, D.C. 20580 (2) if to Defendants, to: Xxxxxxxx X. Xxxxx,
Xx., 0000 Xxxxxxx Xxxx, Xxxxx 000X, Xxxxxx, Xxxxx 00000, or to those addresses
of Defendants as may be forwarded to the Federal Trade Commission at the above
address from time to time.
VII.
Plaintiff agrees that, before seeking any civil remedies against any of
the Defendants in the future regarding the advertising, offering for sale,
licensing, contracting, sale, or other promotion of a business venture by
AmeraPress, HBG, and/or Vendworx it will provide at least ten (10) days written
notice to each of such Defendants at issue, setting forth a date, time and place
where such civil remedy may be sought. The Commission further agrees that,
before or during this ten day period, it will meet and confer with the
Defendant(s) at issue and such person(s)' attorneys.
AGREED:
/s/ Xxxx Xxxxxxxxx Dated: April 7, 1998
--------------------------------------------
XXXX XXXXXXXXX
Acting Deputy Director, Bureau of Consumer Protection
Federal Trade Commission
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ATTORNEYS FOR PLAINTIFF
FEDERAL TRADE COMMISSION
This Agreement is being signed on behalf of the Federal Trade Commission by Xxxx
Xxxxxxxxx, Acting Deputy Director of the Bureau of Consumer Protection of the
Federal Trade Commission, who, by signing this Agreement, represents that he
approves this Agreement on behalf of the Director of Bureau of Consumer
Protection of the Federal Trade Commission, and will recommend and use his best
efforts to obtain the approval of the Federal Trade Commission by 5:00 p.m.,
Central Daylight Savings Time on Thursday, April 9, 1998. If the Federal Trade
Commission approves this Agreement and the Agreed Final Order by 5:00 p.m.,
Central Daylight Savings Time on Thursday, April 9, 1998, counsel for the
Federal Trade Commission will notify the Defendants in writing, by facsimile
transmission to Xxxx Xxxxx by 6:00 p.m., Central Daylight Savings Time on
Thursday, April 9, 1998.
[COMPANY SIGNATURE PAGES OMITTED]
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