E-commerce software company iMergent Inc. is tying up some loose ends of some legal and regulatory troubles.
The company, based in Orem, said this week that the 3rd District Court in Salt Lake has given preliminary approval of a settlement of litigation filed in various courts in Utah. It also said recently it had settled with two states on regulatory issues.
Under terms of the court settlement, iMergent will get $3.3 million in insurance proceeds that will be used to pay $2.8 million to settle a business-practices class-action lawsuit and $500,000 for attorney fees.
The settlement also calls for iMergent to adopt certain corporate governance measures and to put certain items to a shareholder vote.
Last week, iMergent said it had reached an agreement with the Utah Division of Consumer Protection that resulted in the dismissal of the division's petition calling for iMergent to register as a business opportunity. IMergent said it agreed to disclosures "intended to clarify the company's business model."
The Utah division had contended that iMergent and its Internet company, StoresOnline Inc., violated the Utah Business Opportunity Disclosure Act because it sold an assisted marketing plan, or "business opportunities," without filing required information with the division. IMergent had argued it did not sell business opportunities and was not subject to regulation by the division because it does not hold seminars in Utah.
On Monday, the company said it had settled with the state of Louisiana to resolve certain matters. The settlement called for iMergent to not have to register as a business opportunity, "nor does it restrict the company from doing business in Louisiana," the company said.
The settlement calls for iMergent to make certain refunds and a payment to the Louisiana Department of Justice Consumer Enforcement and Education Fund. The total amount to be paid by the company is $75,000. The company also agreed to make certain disclosures regarding the software sold and certain disclosures related to sales representations made by the company.