Texas Attorney General Ken Paxton today added a new count to the lawsuit against RadioShack to protect the interests of consumers holding unredeemed gift cards with the company. The count alleges RadioShack violated the Texas Deceptive Trade Practices Act by selling 16,700 gift cards to consumers between January 1, 2015 and February 6, 2015, when the company clearly knew it was about to file bankruptcy and terminate its acceptance of gift cards.
“While the company knew it would be filing for bankruptcy in the coming weeks, RadioShack continued to sell gift cards to its customers, falsely representing that they would never expire,” Attorney General Paxton said. “Consumers deserve better, and we will fight to ensure that they are treated honestly and fairly by former RadioShack in this process.”
On July 22, the U.S. Bankruptcy Court in Wilmington, Delaware denied former RadioShack's motion to dismiss Texas’ case seeking to protect the interests of 2.9 million customers holding approximately $46 million in unredeemed gift cards with the company. The states of Arkansas, Maryland, Massachusetts, Oregon, Tennessee and Virginia have filed similar or identical proofs of claim in the bankruptcy case on behalf of consumers in their respective states
To date, RadioShack has failed to give any notice of the claims process or notice of the filing of bankruptcy to holders or purchasers of unredeemed gift cards. Texas filed the lawsuit to protect these consumers in June.