June 25, 2011

Lady Gaga Facing A 5 Million Dollar Lawsuit

A Detroit law firm, 1-800-LAW-FIRM filed a lawsuit in the circuit courts for allegedly scamming money from sales of her "We Pray For Japan" wristbands. The wristbands sold for $5.00 with a $3.99 shipping fee and a $0.60 cent tax. 


The law firm is stating that Gaga kept part of the $5.00 and inflated shipping charges so that she could pocket more. She then counted even the money she allegedly pocketed in her donation figures, artificially inflating donation numbers, in order to make more money, the suit charged.

Another problem is that Gaga didn't properly disclose how much of that money was going to Japan. Attorneys Ari Kresch and Alyson Oliver of 1-800-LAW-FIRM have this to say:

“I’m suing Lady Gaga simply to hold her accountable for giving the money that she was raising for charity to the cause that she was trying to raise it for,” said Ari Kresch.

“But when you use your celebrity and your power as a musician to take money from people under false pretenses, that’s just wrong,” said Alyson Oliver.

“When we tried to communicate with the defendants in this lawsuit, all we got was, well, some of the money is being retained, but we don’t really know how much, is the essence of the response that we got,” Oliver said.

It will be interesting to see how this pans out.  I guess Gaga did want that $5.00 in your pocket after all. 


See the Federal Class Action Lawsuit here!!!!


UPDATE:  There have been many complaints from customers on her website saying they did not receive their bracelets. Lady Gaga has sold her wristbands across the country which could mean that she violated consumer protection laws in every single state.  1-800-LAW-FIRM was alerted to the alleged scam because Gaga charged tax and charities are not subject to tax. So where did that tax money go?