H&R Block Class Action Lawsuit

$19.4 MILLION SETTLEMENT REACHED IN EXPRESS IRA CLASS ACTION

On January 22, 2010, the Court granted preliminary approval to a $19.4 million settlement providing for the repayment of program fees charged under the H&R Block Express IRA program and affording other relief to the class. The settlement is administered by Analytics, which was appointed by the Court to provide notice to the class and oversee the distribution of settlement funds.

On May 17, 2010, the Court granted final approval of the $19.4 million settlement.

COURT REJECTS H&R BLOCK'S EFFORT TO DISMISS CASE

Girard Gibbs served as lead counsel in a case against H&R Block alleging that the tax firm misled consumers in the marketing and sale of the "Express IRA" product. The class action lawsuit alleged that consumers who opened Express IRAs lost money because H&R Block's fees for the accounts exceeded the interest earned by the accounts. The lawsuit further alleged that H&R Block failed to adequately explain the Express IRA's financial consequences and limitations and that H&R Block knew that the Express IRA was an unsuitable investment for most of its clients.

On August 14, 2006, the Judicial Panel on Multidistrict Litigation granted Girard Gibbs’ motion to transfer similar lawsuits that had been filed across the country to the United States District Court for the Western District of Missouri for centralization.

On December 18, 2006, the court appointed Girard Gibbs to serve as Interim Lead Counsel.

Following the appointment of Interim Lead Counsel, H&R Block filed a motion to dismiss the case, asserting that Plaintiffs failed to state a claim upon which relief can be granted. Plaintiffs opposed the motion, and on August 1, 2007, the Court ruled in Plaintiffs’ favor on all but one claim. The Court held that Plaintiffs stated a cause of action against H&R Block for violations of Missouri securities laws and the Missouri Merchandising Practices Act, breach of fiduciary duty, unjust enrichment, money had and received, and equitable rescission.

If you invested in an Express IRA account with H&R Block we would like to hear from you. Please call 1-866-981-4800 or fill in the following form to send us an e mail.

Why Girard Gibbs LLP?

Girard Gibbs is a national litigation firm specializing in securities litigation, consumer class actions and complex business litigation. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been chosen as Superlawyers by Law & Politics, recognizing them as among the top 5-percent of attorneys practicing in Northern California.