eWork Business Fraud

Summary of Case and Settlement:

In Ramirez v. eWork, Inc., No. 06-cv-00686 (D. Colo.), Cafferty Clobes Meriwether & Sprengel LLP (“CCMS”) served as lead counsel on behalf of a class of businesses and entrepreneurs against eWork, Inc., an national internet-based business lead generation service. The case alleged that eWork, Inc. misled businesses and entrepreneurs into paying thousands of dollars for project leads and access to Fortune 500 companies that simply did not exist. On behalf of the Class, CCMS asserted that eWork, Inc. had willfully violated the Colorado Consumer Protection Act and breached its contracts with class members. CCMS obtained a very favorable ruling on eWork’s motion to dismiss, see Ramirez v. eWork, Inc., 2007 WL 2746634 (D. Colo. 2007), and thereafter engaged in extensive discovery to develop the evidentiary record needed to prove the class’ claims at trial. Amid the litigation, eWork stopped doing business and shuttered its offices. Nonetheless, CCMS achieved a settlement under which 100% of the company’s cash and other liquid assets would be distributed to the Class. On September 15, 2008, the Court (Judge Walker D. Miller) granted final approval to the settlement, and re-affirmed its earlier preliminary approval order, which noted that CCMS was “highly experienced” in handling class actions and other complex litigation and had “vigorously prosecuted” prosecuted the class’ claims.

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