Reader's Digest Nears Ch. 11 Exit With $27M FTC Claim Deal

Law360, New York (May 31, 2013, 2:22 PM EDT) -- Reader’s Digest Association Inc. asked a bankruptcy judge Thursday to approve a $27 million claim by the Federal Trade Commision over a deceptive marketing settlement that the company called one of the final hurdles in its emergence from bankruptcy.

The claim relates to an August 2012 FTC complaint and settlement over allegations that Reader’s Digest subsidiary Direct Entertainment Media Group Inc. and others falsely marketed the rapid, dramatic weight loss capabilities of the Ab Circle Pro exercise device.

The agency and Reader’s Digest have been at...
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