2008-12-18 / Family

Pure Weight Loss Agrees To Pay Back Pa. Customers

HARRISBURG, Pa. (AP) - A bankrupt weight loss company has agreed to pay $700,000 to settle complaints from former customers who did not get products or services they paid for.

The Pennsylvania attorney general's office on Friday announced the consent agreement with Horsham-based Pure Weight Loss Inc. and owner Vahan Karian.

Most of the money will go to people who filed complaints with the attorney general, but some will go into a fund to pay former customers who have filed claims as part of the company's bankruptcy proceeding.

The state is still verifying claims, and the amount paid out will vary among customers.

Formerly known as L.A. Weight Loss Centers Inc., the company shut down about year ago and filed for bankruptcy protection Jan. 11. It listed liabilities of $10 million to $50 million and assets of less than $10 million.

Karian signed the consent agreement in October, and a Pennsylvania Commonwealth Court judge signed off on it last week.

A phone message left Friday for Karian's lawyer was not immediately returned.

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