Several months ago, I wrote a post about the questionable value of a DirectBuy membership. My conclusion was that while it may be a good deal for some people, it may not be for others. There are a lot of details that a potential member should consider before signing on the dotted line. Recently I received a legal notice in the mail regarding a pending settlement in a class action lawsuit against DirectBuy. (United States District Court for the District of Connecticut).
According to the plaintiffs, DirectBuy should have, but did not, disclose that they receive certain financial benefits from some of its suppliers. These benefits, such as early payment discounts and volume rebates, should be passed on to DirectBuy members, the plaintiffs contend. Full details of the plaintiffs’ claims and a copy of their complaint are accessible by password only.
DirectBuy denies any wrongdoing but has agreed to a settlement in the case. The settlement amounts to a brief period of free membership for current and past members. The length of the free period depends on the member’s status).
Documents have been mailed to the parties affected by this class action.
Please note, however, that this settlement only affects one class action. There are other class action lawsuits pending. Former and current members should examine all of their legal options closely before agreeing to any settlement. Accepting a settlement forfeits rights to other claims.