California IOU Class Action Filed
UPDATE 7/29/2009 - WE HAVE FILED A CLASS ACTION LAWSUIT REGARDING THESE CALIFORNIA IOUs. The suit seeks injunctive and declaratory relief on behalf of those who have been issued California IOUs. More details to come, please keep watching this page.
Confronted with a large budget impasse, the State of California is now issuing millions of dollars worth of “I.O.U.”s.
In addition to creating a major inconvenience for consumers, these I.O.U.s are also creating problems for small businesses that contract with the state of California.
So far, California has mailed $354 million worth of IOUs and plans to issue a total of $3 billion by the end of July. Around $140 million of the warrants are expected go to small business owners. While the state controller's office won't say exactly how many small companies will be hit, it's likely to be a big number: The state's department of general services says it holds $2.7 billion worth of annual contracts with at least 14,000 small companies, most of them California firms.
If you own (or work for) a California business that has been forced to accept I.O.U.s from the State of California, please contact our law firm. We are currently investigating this matter, and we may be able to help you.
Audet & Partners represents individuals, governmental entities, small businesses and institutional shareholders in product liability, tort, negligence, consumer, construction defect, investment fraud, securities, insider trading, antitrust, environmental, whistle blower, aviation and employment cases. In recognition of their outstanding abilities and commitment to the legal profession over the years, the firm and its members have served as Court-appointed Plaintiffs’ Counsel in dozens of federal and state cases throughout the United States.
