Lear Capital Lawsuit: Latest Updates for Investors

Lear Capital has long been a go-to choice for many looking to invest in precious metals. 

With over two decades of experience, the company has facilitated transactions totaling more than $3 billion and has garnered a reputation for its reliability in setting up precious metals IRAs.

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After delving deeper into Lear Capital’s offerings, it becomes evident that the company provides several customer service advantages including: 

  • Smooth transaction guarantee,
  • A zero-fee buyback program,
  • A team of professional customer service representatives is readily available to address any inquiries or concerns.

However while Lear Capital generally presents itself as a reputable company, it’s crucial to examine whether its record remains spotless or if any legal challenges are looming.

We conducted extensive research, and here’s what we found about Lear Capital Lawsuit. 

Current Lear Capital Lawsuits Status 

Investing in precious metals can be exciting, but picking the right company is key to making sure your money is safe.

Lear Capital homepage

That’s why we wanted to give you the facts about Lear Capital, a popular choice for many investors. We did some digging on websites like UnCourt, Justia, and Casetext, and found that Lear Capital has been involved in some legal battles.

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These lawsuits claim Lear Capital did a few things investors might not like:

  • Promised more than they delivered: Some lawsuits say Lear Capital used misleading tactics when selling their products.
  • Misdescribed their products: Some investors claim Lear Capital didn’t tell the whole story about their precious metals options.
  • Charged hidden fees: A few lawsuits involve disagreements about the fees Lear Capital charged.

It’s important to note that Lear Capital has settled some of these lawsuits. But others are still ongoing or were settled outside of court.

All Lear Capital Lawsuits 

Let’s take a closer look at each lawsuit against Lear Capital and see how serious these are. This will help you make an informed decision about whether Lear Capital is the right fit for your precious metals investments.

Lawsuit 1. People of the State of New York et al v. Lear Capital

In June 2021, New York Attorney General Letitia James filed a lawsuit against Lear Capital and its founder, Kevin DeMeritt, alleging that they defrauded nearly 1,000 New Yorkers out of approximately $10 million in a precious metal investment deal. 

Lear Capital lawsuit on Justia

The lawsuit claimed that Lear persuaded investors, including many elderly residents seeking to safeguard their retirement savings, to invest tens of millions in precious metals while fraudulently charging undisclosed commissions of up to 33% on more than $43 million in sales. 

Lear targeted New Yorkers’ individual retirement accounts and other savings, unlawfully profiting approximately $10 million at the commencement of these investments.

Additionally, Lear was not registered as a commodity broker-dealer, commodity investment advisor, or telemarketer, as required by New York law.

Recently, in January 2022, New York Attorney General Letitia James secured $6 million from Lear Capital, resolving the lawsuit. 

The settlement addressed allegations that Lear fraudulently failed to disclose millions of dollars in commissions charged to consumers.

The company had misled consumers about the value of the gold and silver it sold, violating state law.

Lawsuit 2. Patterson v. Lear Capital 

On April 15, 2020, Patterson filed a lawsuit against Lear Capital for personal property dispute. The case was brought to the U.S. District Court for the Utah District, with Judge Dale A. 

Kimball presiding. The current status of the case is listed as Disposed – Other Disposed.

Lawsuit 3. Ireland v. Lear Capital

Lear capital lawsuit involving Ireland

This legal dispute stems from the purchase of “numismatic” gold coins by Evelyn Ireland from Lear Financial, Inc. (now known as Lear Capital, Inc.). 

Ireland took legal action against Lear and two of its employees, Joanne Verbon and Bradford Kaye, in Minnesota state court. She sought damages alleging misrepresentations regarding the value of the coins she bought.

Defendants moved to have the case either stayed or dismissed pending arbitration. Alternatively, they sought dismissal based on a forum-selection clause. 

The court has decided to grant their motion partially, opting to stay the case pending arbitration.

“Numismatic” coins hold value not just for their gold content but also for their historical significance or aesthetic appeal. This distinction is outlined in a resource provided by Lear Capital. 

The company underwent a name change from Lear Financial, Inc. to Lear Capital, Inc. in 2007. Both entities are treated as a single entity in this legal matter and referred to as “Lear.”

Lawsuit 4.  Lear Capital was Filed as a Bankruptcy  

Lear Capital bankruptcy

On March 2, 2022, Lear Capital filed for Chapter 11 bankruptcy. 

The bankruptcy filing took place in the US Bankruptcy Courts, Delaware. The Judge overseeing the case is Brendan Lienhan Shannon.

As part of the bankruptcy plan, Lear Capital agreed to allocate $5.5 million to compensate investors who had purchased precious metals from the company.

Lawsuit 5. French v. Lear Capital

On April 28, 2021, French filed a lawsuit against Lear Capital, Inc. in the U.S. District Court for the Northern District of New York. 

This Lear Capital lawsuit, categorized under Finance – Security/Commodity/Exchange, was presided over by Judges Daniel J. Stewart and David N. Hurd. The current status of the case is listed as Disposed – Other Disposed.

Lawsuit 6. William Dennison Vs Lear Capital

William Dennison's Lear Capital lawsuit

On May 29, 2018, William Dennison initiated a lawsuit for Elder/Dependant Adult Abuse against Lear Capital, Inc. in the Los Angeles County Superior Court, specifically at the Santa Monica Courthouse in Los Angeles, California. The case’s status is recorded as Disposed – Dismissed.

Lawsuit 7. Mary M. Boud v. Lear Capital

Lear Capital lawsuit listed on Unicourt

Mary M. Boud filed a lawsuit for personal property fraud against Lear Capital, Inc. on November 13, 2020. 

The case was brought to the U.S. District Court for the Central District of California. Judges Christina A. Snyder and Paul L. Abrams presided over the case, which is now marked as Disposed – Other Disposed.

Lawsuit 8. Linda Mclean Vs Lear Capital

Linda Mclean's lawsuit against Lear Capital

On November 27, 2019, Linda Mclean filed a lawsuit against Lear Capital, Inc. for an unspecified contract issue. 

This legal action took place in the Los Angeles County Superior Court at the Stanley Mosk Courthouse, with Judge Barbara M. Scheper overseeing the case. Currently, the case is listed as Pending – Other Pending.

Lawsuit 9. Lear Capital Inc Vs Rosland Capital 

Lear Capital's lawsuit against Rosland Capital

On August 13, 2015, Lear Capital Inc filed a lawsuit for other personal injury against Rosland Capital LLC. 

This case was filed in the Los Angeles County Superior Court at the Stanley Mosk Courthouse in Los Angeles, California. The case was later Disposed – Dismissed.

You can find more information by clicking here: Lear Capital Lawsuits

About Lear Capital 

Despite the Lear Capital lawsuits discussed previously, Lear Capital remains a functioning precious metal company founded in 1997. They specialize in selling precious metals like gold, silver, and platinum. 

Their product range includes various forms like coins and bars, alongside services like IRA rollovers for retirement savings and secure storage for your metals.

A team of specialists provide guidance on incorporating precious metals into your investment strategy. Their goal is to help you diversify your portfolio and potentially achieve greater stability by including these traditionally safe-haven assets. Here’s a quick rundown of Lear Capital’s leadership:

  • Chairman: Kevin DeMeritt
  • CEO: John Ohanesian

Lear Capital focuses on client service with a dedicated customer relations team led by Jeremy Jason. Raymond Carter and Steven Jason act as customer service specialists, aiming to provide personalised assistance and advice.

The company boasts a team of experienced precious metal specialists with backgrounds in finance, economics, and the precious metals market itself. These specialists are trained to offer expert advice tailored to your investment goals.

The Verdict 

After digging into Lear Capital, here’s what we found: they’ve been in the precious metals business since 1997, helping people invest in gold, silver, and platinum. 

With over $3 billion in transactions under their belt, they’re known for their expertise in setting up precious metals IRAs.

Lear Capital has a team of specialists to guide you through investing in precious metals, and many customers have had positive experiences with them. 

Plus, they offer services like IRA rollovers and secure storage for your metals, making it easy to invest in these assets.

Ultimately, whether Lear Capital is right for you depends on your investment goals and comfort level with risk. 

You might also find these links useful: Augusta Precious Metals lawsuit and American Hartford Gold lawsuit.

It’s crucial to do your research, compare different dealers, and maybe even chat with a financial advisor before making any decisions. After all, it’s your money, and you want to make sure it’s in good hands.

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