YTB International issued a statement early this week to its staff and field group saying that the company has a tentative settlement agreement with the State of California.
But on Tuesday, Scott Gerber, a spokesman for the California attorney general’s office, said that the state had sued YTB last year to block it from operating an illegal pyramid scheme, and that there is no final agreement at this point. He said that the attorney general’s office would not enter into any settlement that did not change how YTB markets and operates its business in California so that consumers are protected.
In August, California Attorney General Edmund G. Brown Jr. announced a lawsuit against YourTravelBiz.com for operating what Brown called a “gigantic pyramid scheme” that recruited tens of thousands of members with claims that members could earn huge sums of money through its online travel agencies.
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