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flame war - hancock4@bbs.cpcn.com (Jeff nor Lisa) wrote in message The customers have plenty of defenses against Norvergence Why would they? The company went broke. Companies do that all the time and anyone who is owed money (customer or creditor) has to get in line at bankruptcy court and file a claim.Because Norvergence didn't perform on its agreement to provide theservice for 5 years. So for instance if Norvergence had kept theequipment rental agrements instead of unloading them to the financecompanies, the customers could argue that they didn't owe Norvergenceanything because Norvergence hadn't performed on the service part ofthe deal. By assigning greatly inflated values to the equipment partof the deal, and assigning the equipment stream of income to a thirdparty, Norvergence made it much harder for the customers to resistpayment to the third party assignees (because these assigneessupposedly take the assignment as purchasers for value with no actualknowledge of customer defenses against Norvergence). That is why it isso important for the customers to band together and take action ontheir own behalf. It's almost certain that the financing companieswill try to enforce the leases even though Norvergence is BK, and it'sup to the customers to defend themselves (or continue to pay fornearly worthless equipment and no phone service).NR:>> What needs to happen here, in my view, is that the customers of the various leasing companies ... need to band together and file class action lawsuits against them.JNL > It depends on the amount of individual losses. For some, thetime, effort, aggravation, and legal fees wouldn't be worth it.Right. Individual losses, though substantial (most Norvergencecustomers are probably looking at over $25,000 in payments over fiveyears, and some will owe much more than that) make it difficult tojustify a lawsuit, and it will be expensive to get the right amount ofdiscovery done to prove that the financing companies knew what was up,at least at some point. That's why the customers need to find eachother and take action. If they don't, the financing companies willjust pick them off one at a time and it will be difficult to resist.JNL > In the event that actual fraud (intentional deception) is found, then the district attorney should be brought in.Good point. It looks like Norvergence wasn't paying its telecom bills,and I've read complaints from employees that they weren't being paidtheir commissions due, so all that money from selling rental contractsmust have been going somewhere. I wonder where it all went?N. Rackeertu[TELECOM Digest Editor's Note: Norvergence customers can find eachother through a web site http://www.norvergence-cit-fraud.com setup for them. PAT]
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