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June 26, 2013 / Brandon Brouillette

Second Lawsuit Filed Against H&R Block for Delayed Tax Refund Payments

Last month a new class action was filed against H&R Block in the Northern District of California, alleging that a glitch in the company’s tax preparation software resulted in customers’ tax refunds being delayed a month to several months.  This is the second class action that has been filed against H&R Block as a result of the delay in tax refund payments.  An earlier class action was filed against H&R Block in the Eastern District of Michigan.hrblock

According to the Complaint, the Plaintiff and the class allege that the delay in funds ran afoul to H&R Block’s “100% accuracy guarantee,” resulting in a breach of contract and violations of the state’s consumer protection laws for Unfair Business Practices and False Advertising.  As a result, the lawsuit seeks more than $5 million in damages for H&R block customers nationwide that did not receive their refunds on time.

Prior to the most recent suit being filed, H&R Block issued an apology to those affected, pointing to a glitch involving tax payers receiving education credits.  In addition, the company offered $25 debit cards to each customer whose tax refund was delayed.  However, for individuals relying on their refunds to pay rent, tuition, car payments, etc., the $25 debit card would hardly make them whole.

If you or someone you know has similarly been a victim of a company’s false advertising, please contact the attorneys at Khorrami Boucher Sumner Sanguinetti, LLP for a free confidential consultation.


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