City Attorney Mike Feuer Secures $2.75-Million Settlement of Lawsuit Against Lear Capital

LOS ANGELES — City Attorney Mike Feuer announced Jan. 10, that his Office has secured a $2.75-million settlement with Lear Capital, Inc., a Los Angeles-based gold/silver coin dealer, to resolve allegations raised in Feuer’s 2019 lawsuit that Lear had engaged in unfair and deceptive business practices. As part of this settlement, Lear is required to implement changes to its business practices, protecting consumers nationwide. Eligible customers can also receive restitution.

Feuer filed the lawsuit in June 2019, alleging that Lear Capital routinely charged customers exorbitant fees for their investments under false pretenses. The lawsuit alleged that Lear Capital promised customers that it would charge a small transaction fee, when actually, Lear often collected a fee equaling 33% of the customer’s total purchase price. The lawsuit further alleged that Lear Capital limited communications with customers to the phone, before purchases were finalized, thereby eliminating any paper trail of the allegedly misleading representations salespeople verbally made to customers.

As alleged, customers relied on Lear Capital’s verbal promises, often discovering the actual fee Lear Capital charged for their transactions after it was too late – since Lear Capital typically didn’t provide terms of any transaction in writing until the customer already paid. The lawsuit additionally alleged that Lear Capital threatened customers if they went public about their complaints.

In addition to the $2.75-million monetary settlement, Lear Capital must change how it conducts business, protecting consumers nationwide.  

Eligible Lear Capital customers will be contacted by an independent third party handling the claims administration process. Feuer’s office estimates that restitution will be paid in or around April.