Select Comfort Hit With Suit Over Refurbished Beds

Law360 (March 3, 2010, 4:25 PM EST) -- Select Comfort Corp. has been hit with a proposed class action alleging it breached contracts, unjustly enriched itself and violated consumer protection laws by selling beds as new when, in fact, they were refurbished.

The complaint, lodged Friday in the U.S. District Court for the Middle District of Pennsylvania, says when Select Comfort receives products returned by consumers, it refurbishes them or their components and sells them.

But although the Minnesota-based company, which operates a nationwide chain of nearly 500 retail stores, disclosed this practice to investors in filings with the U.S. Securities and Exchange Commission, it did not tell its...

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