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Richard J. Lambert was named by Best Lawyers® as a 2021 Corporate Law “Lawyer of the Year.”

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Company banned from New Jersey after litigation with state

Companies can be sued by a variety of plaintiffs. Other businesses, private parties, regulatory agencies and even the state or federal governments can sue a business. Business litigation can arise from any source and be costly and frustrating for a company. It may have to spend valuable time and resources to clear up the business dispute. In some situations, commercial litigation can lead to a drastic outcome for a business.

Recently, a New Jersey travel company, Global Travel Solutions, settled its lawsuit with the state of New Jersey. The state sued Global Travel Solutions after a number of customers complained that they were not receiving the services they were promised and had paid for.

Apparently, in order to join Global Travel Solutions, customers paid up to $10,000. They were also responsible for a monthly fee. In return customers were members of the travel club and were promised discounted trips around the world. However, according to the state, the owner of Global Travel Solutions did not deliver. In total, 700 customers began to complain and the state investigated.

Eventually, the state brought a suit against Global Travel Solutions. Under the terms of the new settlement with New Jersey, Global Travel Solutions agreed to pay restitution to its former customers. Furthermore, the company is banned from operating in New Jersey ever again. Finally, the company will have to pay a fine.

While banning a company from operating in New Jersey is an extreme measure, it is a possible outcome to a business dispute. In many cases, negative outcomes can be minimized if litigation is properly managed from the start. With the right help, businesses can settle disagreements quickly and get back to work.

Source: WABC, “NJ Travel company shut down after complaints, lawsuit,” Nina Pineda, Sept. 24, 2012

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