The D.C. Attorney General is suing InPhonic. |
An article published today by the Washington Post states InPhonic stands accused of failing to deliver on rebates after the District-based retailer of wireless services and cellphones racked up more than 2,000 consumer complaints over the past three years.
The full Washington Post article can be read here.
The D.C. Attorney General's lawsuit was based on 2,210 complaints filed with the Washington area Better Business Bureau since 2003. Bureau president and chief executive Edward Johnson said the volume of complaints made InPhonic "one of the single most complained-about companies in the country."
InPhonic has lost money consistently for years under CEO David Steinberg's leadership. The company has burned through tens of millions of dollars and has not been profitable since its inception.
The company saw losses of $32.3 million in 2004 and $38.2 million in 2005, according to its latest annual report. As a result, shareholders have seen the value of their stock drop from as high s $25 to as low as $5 per share during Steinberg's tenure. The stock closed at $7.13 today.
InPhonic is also currently embroiled in many other lawsuits.