Attorney General Reaches Settlement Agreement with Sioux Falls Quality Water

PIERRE, S.D.- Attorney General Larry Long announced today a settlement resolving a lawsuit filed against Sioux Falls Quality Water and its owner, James A. Lund.

"This settlement forces Lund and his company to deal honestly with consumers," said Long. "They have agreed to fundamentally change their business practices."

The state sued Lund and his company on June 12, 2006. The state then sought and received a preliminary injunction in December. In granting the preliminary injunction, Circuit Court Judge Stuart L. Tiede specifically found that Lund and his company had provided false information to consumers and had altered a sales document. The preliminary injunction issued in December allowed Lund and his company to continue to operate, but restricted the manner in which they conducted business.

The settlement reached this week resolves the lawsuit, and it specifically prohibits Lund and his company from:

• Conducting any unannounced sales or solicitation visits to consumers’ homes;
• Failing to fully complete all paperwork and documents at the point of sale, in the presence of, and with the full understanding of, their consumers; and
• Failing to fully honor warranties.

"We imposed strict settlement terms because the company is not able to make full restitution to consumers," Long said. "We wanted to get more money for consumers, but the financial condition of the company precludes full restitution."

Lund and his company have agreed to pay $100 to approximately 120 consumers in South Dakota, Iowa, and Minnesota. The eligible consumers will receive a letter in a few days from Long’s office. As part of the settlement, Lund has issued a written apology to consumers.

Consumers with questions or concerns about Lund or his company may contact the South Dakota Consumer Protection Division at 1-800-300-1986 (toll free in-state), or by calling 1-605-773-4400.