Chargebacks911 Seeks Discovery Stay Pending Ruling on Motion to Dismiss

Defendants Chargebacks911 and Gary Cardone and Monica Eaton, owners of parent company Global E-Trading, moved (docket 8:23-cv-00796) to stay discovery pending resolution of their amended motion to dismiss a fraud lawsuit brought by the FTC and the Florida attorney general in U.S. District Court for Middle Florida in Tampa (see 2306300046). The April complaint alleges Chargebacks911 allowed its clients to run “microtransactions” via prepaid debit cards that artificially lower a merchant’s overall chargeback rate by inflating the total number of transactions running through the merchant’s account, thus lowering the percentage of their charges that were disputed by consumers. The court should enter a stay because defendants’ motion “is case dispositive and requiring discovery to proceed during the pendency of the motion would impose substantial and potentially unnecessary costs" on them, it said.