Complaint in Pilgrim et al v. Universal Health Card LLC et al

IN THE UNITED STATES DISTRICT COURTNORTHERN DISTRICT OF OHIO

EASTERN DIVISION

DANIEL PILGRIM, Individually and ) CASE NO.on Behalf of All Others Similarly )Situated ) JUDGE6165 Butler Road )Macon, MS 39341 ))

CLASS ACTION COMPLAINT

and ))

(Jury Demand Endorsed Hereon)

PATRICK KIRLIN, Individually and )on Behalf of All Others Similarly )Situated )101 Gladstone Road )Lansdowne, PA 19050 ))Plaintiffs, ))vs. ))UNIVERSAL HEALTH CARD, LLC )c/o John A. Armstrong, Statutory Agent)3939 Everhard Road )Canton, OH 44709 ))and ))COVERDELL & COMPANY, INC. )c/o Brian Branchick, Registered Agent )1718 Peachtree Street NW, Suite 276 )Atlanta, GA 30309 ))Defendants. )Plaintiffs, Patrick Kirlin and Daniel Pilgrim, by their attorneys, Hermann, Cahn& Schneider, LLP and Meiselman, Denlea, Packman, Carton & Eberz P.C., as and

for their class action complaint, allege, with personal knowledge as to their ownactions, and upon information and belief as to those of others, as follows:Nature of this Case1. This action seeks to redress a deceptive and otherwise improperbusiness practice that Defendants Universal Health Card LLC (“UHC”) andCoverdell & Company, Inc. (“Coverdell”) are perpetrating; specifically, Defendantshave established one of the largest consumer health benefits scams in the UnitedStates through the placement of deceptive advertisements in various newspapersacross the country. The advertisements promote membership in a health careprogram – the Universal Health Card – that purportedly provides discounts forvarious medical services. Because the medical providers that Defendants claimaccept the Universal Health Card (hereinafter “Card”) do not in fact accept it – andmost have not even heard of the Card – Defendants’ advertisements serve as apretext for gaining access to consumers’ credit and debit card information in orderto charge fees for nonexistent services.2. Defendants have preyed upon Plaintiffs and thousands of Americanslike them by luring unsuspecting consumers in need of affordable health care toenroll in the Card membership program, charging Plaintiffs and other vulnerableconsumers “registration” and monthly fees for worthless memberships in a programthat neither provides health care, nor can be used to gain discounts at variousmedical providers that Defendants claim accept the Card.

33. Consumers almost never legitimately join Defendants’ Cardmembership program with the knowledge that the medical providers that Defendantsclaim accept the Card, in fact, do not accept it. Nor would Plaintiffs and consumersauthorize Defendants to charge their credit cards or debit from their bank accountsany monies if they knew the truth. Moreover, when consumers contact Defendantsto request that they remove and refund the fees charged to their credit or debitcards, they are given the runaround, and are unable to obtain refunds of thecharges.4. Thus, as a result of Defendants’ deceptive and improper actions,consumers, such as Plaintiffs, have been charged “registration” fees and monthlycharges for a product which cannot be used as promised, resulting in Defendants’improper and unlawful monetary gain and benefit.5. This suit is brought pursuant to the Ohio Consumer Sales Practices Act,Ohio R.C. 1345.01,

et seq.

(“OCSPA”), and the common law of this State as well assimilar consumer protection laws of other states, on behalf of a nationwide class ofall persons who were charged fees by Defendants, or any one of their subsidiaries,for the Card maintained and/or administered and promoted by Defendants duringthe period from January 1, 2006, to the present. It seeks, inter alia, compensatorydamages, including, but not limited to, a refund of all fees charged to consumers forthe Card; reimbursement of expenses, interest and fees incurred by Class membersas a result of Defendants’ scheme; attorneys’ fees; and the costs of this suit.Jurisdiction and Venue