A lawsuit has been filed and is seeking class action status against the photography service for allegedly engaging in the use of unconscionable commercial practices, false promises, misrepresentations, and omission of material facts. The lawsuit was filed in State Supreme Court in Manhattan and claims Celebration Studios accepted payments from customers for photos, albums, DVDs, and personalized notes for special occasions, but closed in January 2007 and filed for bankruptcy.
Even a week before closing, Celebration Studios was offering photography packages priced up to $3,995 and video packages costing $2,295 on its web site, which has since shut down. The lawsuit was filed on behalf of all those who paid the company for services that have not materialized over the last two years. The lawsuit claims a $456,000 federal tax lien and a $86,000 New Jersey tax lien have been filed against Celebration Studios over the last two years, so the company knew it was in trouble.
From January 11 to 18, 2008, the Montclair Police Department received about 40 fraud reports about the company. Newlyweds, couples, and families have lost thousands of dollars and priceless photographs from weddings, celebrations, and baby showers.
