Zale Corp. Sued for Insurance Fraud

Zale Corp. is being sued for credit insurance fraud in a class action brought by three law firms under the federal anti-racketeering act. The complaint was filed in federal court in Texarkana, Texas, on July 21, 2000. The suit alleges that since 1993, Zale has knowingly sold credit insurance to customers who were ineligible for it and later refused to pay their insurance claims, citing that ineligibility. Zale Corp. has a policy of not commenting on litigation, but Alan Shor, executive vice president and chief operating officer, says, "We certainly deny the allegation" that Zale "fraudulently induced" customers to buy credit insurance for which they were ineligible. "We feel we run a very good business and will defend ourselves against this [complaint]," he adds. Zale was still studying the allegations at press time. The complaint charges Zale Corp., several retail and insurance su

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