Northern Leasing Fraud on Small Businesses

Billing Practices Debt Collection Unfair Competition and Fraud

The Allegations:

In the spring of 2011, Northern Leasing Systems Inc. and its affiliates conspired to defraud small businesses by attempting to collect purported taxes that were not actually due nor paid to any taxing authority through the use of a shell company, SKS Associates. In addition, from 2006 to 2010, Northern Leasing and its affiliates used an inflated cost basis to assess personal property taxes on leased equipment, resulting in small businesses being overcharged.

The Results:

The parties reached a settlement, which the Court preliminarily approved on August 3, 2017. Class members who were affected by the SKS debt collection conspiracy are eligible to receive refunds up to an amount equal to the amount refunded plus $41.75. Class members who overpaid property taxes are eligible to receive refunds of $14.25 for each year that they overpaid taxes. More information about the settlement, including instructions on how to make a claim, is available below.

Status:

Attention Current and Former Customers of Northern Leasing, MBF Leasing, and Affiliated Companies:

GSLLP is unable to provide legal assistance at this time.

If you need assistance with your lease or related litigation, the New York Attorney General has complied some Frequently Asked Questions that may be helpful to you: https://ag.ny.gov/NLFAQ. Additional information about the New York Attorney General's lawsuit can be found in the "Documents" section below. You can also locate contact information for the attorney general in your state here http://www.naag.org/naag/attorneys-general/whos-my-ag.php.

If you have been sued, you may be able to obtain information from the clerk's office at the New York County Court at (646) 386-5750 or by visiting the court's website at: https://www.nycourts.gov/COURTS/nyc/civil/index.shtml. Finally, the organization Start Small, Think Big provides support to small business owners. They can be reached at (718) 665-5250 or by visiting http://www.startsmallthinkbig.org/.

If you cannot get assistance from one of the agencies above, you should contact your local bar association for assistance locating attorneys in your area who may be able to help.

Have you been affected by Northern Leasing Fraud on Small Businesses?
Contact us.

Key Documents

DateTitle
2010-06-25First Amended Class Action Complaint
2011-03-04Order Denying Motion to Dismiss
2011-03-18Second Amended Class Action Complaint
2012-08-24Plaintiffs' Motion for Class Certification
2012-12-06Third Amended Class Action Complaint
2012-12-06Order Granting in Part and Denying in Part Plaintiffs' Motion for Leave to File a Third Amended Complaint
2013-04-19Motion for Preliminary Approval of Class Action Settlement (Merchant Services April 2013)
2013-05-23Plaintiffs' Amended Motion for Class Certification
2013-06-24Order Granting Motion for Preliminary Approval of Class Action Settlement (June 2013)
2013-10-03Plaintiffs' Motion for Final Approval of Class Action Settlement (Oct 2013)
2013-12-11Order Granting Motion for Final Approval of Class Action Settlement and Judgment (Dec 2013)
2013-12-20Order Granting in Part Plaintiffs' Motion for Class Certification
2016-04-11NY Attorney General Lawsuit - Petition
2016-04-11NY Attorney General Lawsuit - Order on Motion to Dismiss
2017-07-05Motion for Preliminary Approval of Class Action Settlement (Leasing Defendants July 2017)
2017-08-03Order as Modified Granting Motion for Preliminary Approval of Class Action Settlement and Judgment (August 2017)
2017-10-11Plaintiffs' Motion for Final Approval of Class Action Settlement (Oct 2017)
2017-12-05Order Granting Final Approval of Application for Attorneys' Fees
2017-12-05Order as Modified Granting Motion for Final Approval of Class Action Settlement and Judgment (Leasing Defendants Dec 2017)