The Texas Attorney General's Office has announced a $4.5 million settlement of its lawsuit against the Conn's Inc. appliance chain.
Under terms of the settlement, the Beaumont-based retailer will pay $4.5 million in restitution to consumers and $250,000 to defray the state's attorney's fees and court costs. Conn's also agreed to donate $100,000 to the University of Houston Consumer Law clinic.
The state had alleged Conn's relied on aggressive, deceptive sales tactics to build its sales of extended service warranties for its appliances and electronics. In a statement issued by Conn's after Tuesday's settlement, company Chairman William Nylin said the company continues to deny the allegations.
However, the chain has agreed to provide greater disclosure of the warranty conditions.