russell simmons

*Russell Simmons’ troubles following the “glitch” with his RushCard program has invaded his legal space as he faces a class action lawsuit for fraud.

Media sources report the suit is demanding that damages and restitution be paid by RushCard for the period of time in which cardholders were without money. Items cited to justify the demands include late fees for the bills cardholders were not able to pay as well as failed ATM withdrawal fees.

Launched in 2003, the RushCard program was set up as a viable alternative to many lower-income families who don’t usually qualify for traditional banking plans.

In addition to the lack of available funds, RushCard account holders mentioned having issues with their account balance after the program was brought back on line. In some cases, according to reports, the account balances disappeared.

“Plaintiff’s and class members were fraudulently induced into purchasing RushCards and depositing money into their RushCard accounts because they were led to believe their funds would be ‘safe and protected’ with unhindered access to these monies,” the suit states.

The class action lawsuit is the latest development to occur since several RushCard holders were blocked from accessing the money in their accounts because of the “glitch.” In addition, other cardholders state that some of their money was missing from their accounts.

The delay in receiving their funds resulted in many cardholders being unable go without the money in their accounts during the week and a half it took to get the program back online. Ultimately, it came down to a choice between paying utilities and rent and eating.