Top Class Actions  |  August 2, 2022

Category: Closed Class Actions

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$100 bill on a fishing hook against a dark blue background. sweepstakes scam concept - ftc next-gen refund
(Photo Credit: Velishchuk Yevhen/Shutterstock)

Update:

  • The deadline for those outside the U.S., UK or Canada to request a payment has been extended to June 30, 2023.

After securing a $30 million settlement with Next-Gen, the Federal Trade Commission (FTC) is sending out $25 million in refunds to those who lost money in a sweepstakes scam.

The FTC is sending refunds to consumers in the U.S., Canada, the United Kingdom and other countries who lost money to a Next-Gen prize scheme. Around 240,000 people will receive refund checks.

In 2018, the FTC and the Missouri attorney general took legal action against Next-Gen, accusing the company of operating cash prize sweepstake scams that took advantage of older consumers. The scams allegedly mailed letters to consumers around the world promising them prizes of up to $2 million in exchange for a fee. Fees paid by customers ranged from $9 to $139.99.

However, some consumers — primarily seniors — were duped several times by this scheme before they realized the true nature of the scams.

In March 2019, the FTC and the state of Missouri reached an agreement with Next-Gen in which the company would forfeit $30 million in cash and assets. The recovery includes over $21 million in cash, two luxury vacation homes, a yacht, a Bentley and other property. In addition to funding refund payments, the FTC agreement permanently bans Next-Gen from online prize promotions.

This is the largest recovery ever secured by the FTC in a sweepstakes scam case.

“These defendants tricked millions of people — many of them older adults — into paying money to collect prizes that never materialized,” Andrew Smith, director of the FTC’s Bureau of Consumer Protection, said in a statement. 

“With our valued partners in the Missouri AG’s office, we are working hard to protect older Americans against scams like these.”

The recovery from the FTC agreement will fund $25 million in refunds to affected customers. 

Consumers who live in the United States, United Kingdom or Canada do not need to take action to receive their refund payments. Americans and Canadians will receive their payments as checks. Over $19 million in refund checks are being sent to U.S. and Canada residents. Checks received from the FTC must be cashed within 90 days.

United Kingdom residents will receive their shares as prepaid Mastercard cards. Over $630,000 in Mastercard debit cards are being sent to these individuals. The prepaid Mastercard cards have a two-year expiration date.

Eligible consumers living outside the U.S., Canada or UK must request their refund payment via PayPal through the FTC refund website. The FTC has sent more than 19,500 letters to residents in other countries explaining that they could recover their share of $4.69 million in PayPal payments. 

Requests for these payments must be made by June 30, 2023.

Who’s Eligible

The FTC is sending refunds to consumers in the U.S., Canada, the United Kingdom and other countries who lost money to a Next-Gen prize scheme. Around 240,000 people will receive refund checks.

Potential Award

Varies

Proof of Purchase

No proof of purchase necessary.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

10/17/2022

Case Name

Federal Trade Commission and State of Missouri, v. Next-Gen, Inc., Case No. 4:18-CV-0128, in the U.S. District Court for Western District of Missouri

Final Hearing

N/A

Settlement Website
Claims Administrator

Settlement Administrator
admin@NextGenRefund.com
833-721-2728
+1-612-509-2644

Class Counsel

Nathan F Garrett
Benjamin L Tompkins
Andrew P Alexander
GRAVES GARRETT LLC

Nathan Atkinson
Robert Carlson
Eric Swan
OFFICE OF THE MISSOURI ATTORNEY GENERAL

Richard McKewen
COUNSEL FOR FEDERAL TRADE COMMISSION

Defense Counsel

Braden M Perry
Jon Dedon
KENNYHERTZ PERRY LLC 

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67 thoughts onNext-Gen sweepstakes scam $30M FTC settlement

  1. Shannon Shemwell says:

    Add Me Please

  2. Dale nolting says:

    reply

    1. Arlinda Davis says:

      There are many people who have moved. If you were one involved how do you find out if a letter was sent to a previous address?

    2. Arlinda Davis says:

      Many people moved. how do you find out if a letter was sent to a previous address?

  3. shamoria lovett says:

    please provide claim number i was apart of the scam.

  4. Jeannette Williams says:

    it wouldn’t let me put my claim number In and the captative security code was telling me its wrong

  5. Tonya Wall says:

    Need claim
    Number please

  6. Willie Stokes says:

    Please add me

  7. Victoria Cloniger says:

    I new it was a scam after I didn’t receive my prize but I’m just now learning about the settlement. Please give me a claim number, I was scammed!

  8. Gerald Nobles says:

    I need a claim number

  9. mary ortiz says:

    plz add me I was scammed by these

  10. Tavares Kornegay says:

    add me

1 4 5 6

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