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California to YTB: Huh?April 8, 2009 By: George Dooley
YTB International has issued a statement that claims that YTB (YourTravelBiz.com) has reached a tentative settlement agreement with the California Attorney General's office. The claim was also made in an internal communication and a filing (Form 8K) with the Securities and Exchange Commission on April 7. But at press time, YTB's claim appeared questionable with consumer and trade media citing a spokesman for the office of the California Attorney General, who said no final agreement had been reached.
Reports in the St. Louis Post-Dispatch and Legal Newsline cite a statement by Scott Gerber, director of communications for the California attorney general's office. "Attorney General Brown sued YTB last year to block it from operating its illegal pyramid scheme," Gerber said. "There is no final agreement at this point, and the attorney general would not enter into any settlement that did not change how YTB markets and operates its business in California so that consumers are protected."
YTB’s SEC’s statement said: “On April 6, 2009, YTB International, Inc. (the “Company”) circulated an internal communication to its employees and certain members of its sales force indicating that the Company reached a tentative settlement agreement with the State of California as of Monday, April 6, 2009 in connection with the civil action filed on August 4, 2008 against the Company and certain executive officers of the Company in the Superior Court of California, County of Los Angeles, by the California Attorney General.”
YTB’s stock (YTBLA) gained after the YTB announcement moving from .026 to .032 cents. Travel Agent is seeking comments from YTB executives and the California AG’s office.