Vertrue Blames Online Marketing Regs For Ch. 11 Filing

Law360, New York (April 4, 2012, 10:52 PM EDT) -- Private equity-held direct marketing company Vertrue LLC and affiliates filed for Chapter 11 protection Monday, citing an Iowa court ruling that their marketing practices violated a consumer protection law and new federal rules restricting how they recruit customers online. 

The companies, with $350 million in assets and $713 million in liabilities, face a liquidity crisis caused by the restrictions on online marketing operations, where consumers are offered deals like memberships in discount buying programs after making purchases at third-party online retailers. They are also struggling under...
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