Class action suit against SendTec dismissed
A class action suit filed against direct marketing services firm SendTec Inc. was dismissed June 12.
Paul C. Huck, United States District Judge, signed an order to dismiss the lawsuit filed against SendTec and its officers and directors and some former top executives of the St. Petersburg, FL, company.
Plaintiffs Richard F. Thompson and L. Alan Jacoby claimed SendTec failed to disclose that the individuals selling SendTec securities were not registered brokers/dealers, which is subject to both criminal and civil penalties.
The federal claims of the case were dismissed with prejudice and may not be refiled in an amended complaint, said Daniel G. Hall, senior vice president, secretary and general counsel of SendTec.
However, the state law claims can be appealed.
"The state law claims were dismissed without prejudice," said Richard Bell, a lawyer at the plaintiffs' law firm Cohen & Malad. "We are currently in the process of analyzing whether to appeal."
Back in March Mr. Hall maintained that the complaint filed by the plaintiffs had no merit and had been dismissed twice.
Regardless of the charges against it, SendTec has operated as usual in the past few months. The company reported growth in both revenue and gross profit for the three-month period ending March 31, reaching $9.2 million and $4.6 million, respectively.