Fireplace firm sues Paychex
Paychex Inc. is facing a lawsuit from a Los Angeles-based custom fireplace company that has accused it of fraud. The suit was filed in the U.S. District Court in the Central District of California on Oct. 16.The company, Ironforge.com, alleges the Penfield-based payroll and humans services company engaged in fraud by embezzling small sums of money from its customers by "arbitrarily increasing fees or by charging small, undisclosed fees which customers never agreed to pay," court documents state. It also alleges Paychex of not immediately depositing money for payroll into an employee's account after deducting it and prematurely withdrawing money from clients' banks to pay taxes.
The lawsuit claims the fraud has passed undetected and unabated for years. Court filings state Ironforge.com was a Paychex client from March 2003 to June 2007. The suit cites reviews from epinions.com, a customer-generated Web site, that portray the company in a negative light and complain of overcharging for services.Paychex spokeswoman Laura Saxby Lynch said it is company policy not to comment on pending litigation."But I can tell you we will we will aggressively defend ourselves against these claims," she said.
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