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

In April 2006, Girard Gibbs filed a class action complaint in the United States District Court for the Western District of Missouri on behalf of a nationwide class of consumers who opened H&R Block Express Individual Retirement Accounts (also called Express IRAs). This lawsuit alleges that H&R Block’s claims that the Express IRA offers “great rates” and “a better way to save” were incomplete and misleading, since most consumers who open Express IRAs lose money because the low interest rate earned does not exceed the cost of opening and maintaining the account. The lawsuit further alleges that H&R Block failed to adequately explain the Express IRA’s financial consequences and limitations and that H&R Block knew that its Express IRA clients could expect a negative rate of return on their investment.

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.