Wal-Mart Beats Service Plan Fraud Class Action

Law360, New York (February 21, 2014, 2:39 PM EST) -- A New Jersey federal judge on Thursday tossed a proposed class action accusing Wal-Mart Stores Inc. of selling worthless extended warranties for ineligible “as-is” merchandise, finding the plaintiff couldn’t prove the power washer he bought wasn’t covered under the service plan.

Plaintiff William Hayes alleged in his 2010 complaint that he paid Wal-Mart-owned Sam’s Club for service plans on as-is clearance products including the power washer, but that the retailer never told him the plans do not cover such products unless they come with a manufacturer's...
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