American Hair Growth Centers — LAWSUIT FILED AGAINST American Hair Growth Centers
CLASS ACTION LAWSUIT FILED AGAINST NATURAL HAIR GROWTH INSTITUTE, LTD. AND ITS FOUNDER STEVE BENNIS
March 3, 2010 by The Bald Truth
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CHICAGO, Illinois–March 3, 2010
On March 3, 2010, a class action lawsuit was filed on the behalf of twelve former clients of Natural Hair Growth Institute, Ltd. (“NHGI”) against the company and its President Steve Bennis (“Bennis”) due to rampant and systemic fraud related to its treatment program.
NHGI and Bennis have made numerous false representations of fact about their hair growth business that have caused Plaintiffs and members of the Class significant damages. These misrepresentations include statements that their products are all natural and are chemical-free, that they have a 100% money back guarantee, and that their laser light treatment program recently received FDA approval. All of these representations are false. Prospective clients are duped by these misrepresentations into paying between $8, 000 to $12, 000 of their hard-earned money for Defendants’ treatment program.
Chemical testing of Defendants’ products has revealed the presence of Minoxidil therein despite the representations that the products are all natural and are chemical free. This information was certainly a surprise to the clients of NHGI who were only interested in participating in an all natural and chemical freeprogram.
In addition, Defendants failed to honor the money back guarantee to all twelve Plaintiffs and countless other members of the Class, dozens of whom filed complaints against NHGI and Bennis with the Illinois Attorney General’s office and Better Business Bureau. Defendants also have been practicing medicine without a license. In 2007, the Illinois Department of Financial and Professional Regulation filed a Rule to Show Cause against NHGI and Bennis related to the improper use of their laser light machine without the direct presence and supervision of a licensed physician on the business premises. Despite the entry of a Consent Order in 2008 which ordered them to cease and desist from the unlicensed practice of medicine, Defendants continued to use the laser light machine for hair growth without the direct presence and/or supervision of a licensed physician. The Illinois Attorney General filed a lawsuit in 2009 against NHGI and Bennis seeking to close down the businesses which remains pending.
Since that filing, Defendants have attempted to avoid liability and scrutiny by changing the name of their business several different times, from Natural Hair Growth Institute to Omega Hair Group, American Hair Growth Centers and Chicago Hair Growth Centers.
The lawsuit was filed by Chicago area attorney Robert J. Shelist.
Robert J. Shelist, Esquire [protected]
Law Offices of Robert J. Shelist, P.C.
1061 W. Monroe Street
Chicago, Illinois 60607