29 Mar 2012 07:00
NEWS RELEASE For Immediate Release
Billing Services Group Limited('BSG' or the 'Company')FTC Action
(March 29, 2012) San Antonio, Texas - BSG, an approximately 70-employee billing clearinghouse for the telecommunications industry, merchants and online stores, announced today that the Federal Trade Commission (the "FTC") has initiated an action in federal court in San Antonio accusing the Company and its subsidiaries of violating the terms of a 1999 settlement with the FTC relating to the Company's billing for enhanced service offerings provided by third-party vendors. The settlement is described in Avery Communications' Form 10-KSB filed with the SEC in 2001.
"We are extremely disappointed by the allegations made by the FTC," said BSG's Chief Executive Officer Greg Carter. "We have devoted substantial resources to quality control in billing operations to comply with both the spirit and the letter of the settlement with the FTC as well as the requirements of local phone companies. We believe that our operations fully comply with the terms of the settlement."
The FTC complaint relates to nine enhanced service products provided to consumers by third-party vendors during the period from 2006 to 2010 for which BSG provided billing services. The FTC seeks an order to show cause why the Company and the named subsidiaries should not be held in civil contempt and ordered to pay a sanction of $52.6 million, which amount is based on the net amount charged by third-party service providers to consumers for the nine enhanced service products. The Company believes that the FTC's action is without merit, legally and factually, and it intends to vigorously defend itself in this matter.
Inquiries:
Billing Services Group Limited Kristine Grow 202-777-3557 kgrow@clsdc.comBeau Phillips 202-495-1501 bphillips@clsdc.com
finnCap Limited Stuart Andrews +44 (0) 20 7220 0500Henrik Persson
About BSG:
BSG is a leading provider of clearing, settlement, payment and financial risk management solutions to the telecommunications industry, merchants and online stores headquartered in San Antonio, Texas, USA and traded on the London Stock Exchange (AIM: BILL). For more information on BSG, visit www.bsgclearing.com.