FOR IMMEDIATE RELEASE
December 16, 2008
Jilted Martial Arts Consumers May Find Relief
Attorney General applauds Karate USA’s efforts to aid consumers of a defunct martial arts school
(INDIANAPOLIS, IN) – Indiana Attorney General Steve Carter announced that Karate USA, a local martial arts business of 34 years, will provided services to students of the now defunct Champion Martial Arts (Champion). Champion, and its owner Jonathan Stowe, are the subjects of a civil lawsuit filed recently by the attorney general’s office that alleges the company deceived and misled customers into long-term memberships knowing the agreements could not be fulfilled.
Karate USA, an entirely separate entity, has offered to provide full service training on remaining contract obligations to consumers harmed by the actions of Champion at no cost to the consumers.
“It’s great to see another merchant step up and provide some relief for consumers hurt by the failure of Champion Martial Arts,” said Carter.
While 19 customers are named in the lawsuit filed by the attorney general’s office, Karate USA will provide training to any consumer who possesses a contract listing the remaining services owed from the most recent Champion school closures. Unfulfilled contract terms range from one year to three years and losses named in the lawsuit amounted to over $8,000 in some instances.
Herb Johnson, founder of Karate USA, stated that consumers may visit any of the 14 locations to receive martial arts training on their remaining Champion contracts. “I was appalled by the actions of Champion, and I want to do my part to make sure the community is able to trust and respect the good work that other providers of martial arts services do in this field,” Johnson said.
“As the owner of one of the locations closest to the now defunct Carmel and Zionsville Champion schools, I welcome these students to my studio and look forward to helping to instill faith and confidence in their martial arts practice,” said Jerry Hansman, owner of the Karate USA studio in Carmel.
Eligible consumers may contact Hansman at 317-228-1872 or may bring their unfulfilled Champion contracts to any of the Karate USA locations. Consumers who received full payment for their services in the first settlement action against Champion in 2006 are not eligible, having received full restitution in that case brought by the attorney general’s office.
“As one of the harmed consumers that participated in the lawsuit, I am extremely pleased that Karate USA will honor my contract. My son had his heart set on martial arts training and was disappointed when the other business closed and failed to provide any services at all to us,” said Laura Gagnon.
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