Well, yesterday's news should have come as no surprise to anyone. It was bound to happen and it could have been one of 50 AGs or some Federal authorities. It is quite likely that there will be additional actions being taken with similar claims of deceptive and unfair business practices and of course running an illegal pyramid scheme.
In looking through some forums yesterday, it seems that there are many at YTB that simply have this blind faith in YTB and will take whatever is told to them at face value. Before doing that, please remember how long it took for YTB to disclose the termination by Royal Caribbean and the loss of the IATAN accreditation. Management was not exactly forthcoming.
Yesterday's news was not a surprise to the Management. They had been trying to prevent this day for 18 months and apparently have failed. As Mark Ewing has pointed out in his YouTube Video and in a comment on this blog, this is not IATAN or a vendor, this is VERY serious ande has some very far reaching implications for YTB, their Management and yes, even the Reps and RTAs that may not have been 100% ethical in their recruiting. The AG is looking for yet unidentified defendants.
If you are a Rep or an RTA in California, I woudl think a call to your attorney (not Pre-Paid Legal) woudl be a good investment. If you are a Director in California, I would definately make an appointment, because it is likely you will be named in this suit and you will be required to defend yourself. Do not count on YTB to do it for you.
As I mentioned, Mark Ewing has a very fair and balanced (sorry Fox) perspective on this: