Individuals who hired Optima Tax Relief claim the company made false promises, charged excessive and hidden fees, and failed to deliver promised results, leaving them with substantial financial burdens. The lawsuit seeks restitution, an injunction to stop future harm, and damages for emotional distress.
Complete Date: May 8, 2023 (Case filed)
Case: Melito et al. v. Optima Tax Relief LLC
Citation: Case Number: 8:2023cv00812
Court: United States District Court for the Central District of California
Plaintiffs: Individuals who used Optima Tax Relief’s services
Defendant: Optima Tax Relief LLC
Allegations:
- Unfulfilled Promises: Optima allegedly promised significant tax debt reduction but failed to deliver, leaving clients with outstanding liabilities and additional fees.
- Misleading Information: Optima is accused of misrepresenting the complexity of clients’ tax situations and downplaying the risks involved.
- Excessive Fees: The lawsuit alleges Optima charged hidden fees and exceeded agreed-upon amounts, often through deceptive billing practices.
- Lack of Communication: Clients claim Optima failed to keep them informed about their cases and did not provide clear explanations of fees or financial obligations.
- Unauthorized Actions: Optima is accused of taking unauthorized actions on behalf of clients, such as filing tax returns without their knowledge or consent.
Relief Sought:
- Restitution: Reimbursement for losses incurred due to Optima’s alleged misconduct.
- Injunction: An order prohibiting Optima from engaging in further deceptive practices.
- Damages: Compensation for emotional distress and other harms suffered by clients.
Current Status: The lawsuit is ongoing and could have significant implications for Optima and the tax relief industry. It could set legal precedents for consumer protection and potentially lead to changes in industry practices and regulations.
Additional Details:
- The lawsuit was filed in May 2023 by Peter and Vanessa Melito on behalf of themselves and a class of individuals who engaged with Optima Tax Relief’s services.
- Optima has denied all allegations, claiming it acted in good faith and provided accurate information and services.
- Individuals considering tax relief services are advised to do their due diligence, research companies thoroughly, and seek professional legal advice before signing any contracts.
Note: This information is based on publicly available information as of January 22, 2024. The case is ongoing and details may change.
