SACRAMENTO — California’s attorney general sued the Neptune Society on Monday, claiming the well-known company pocketed $100 million that it should have kept in reserve for those who signed up for its prepaid cremation service plans.
As a result, many of the company’s customers failed to get their full refunds if they canceled their contracts, and thousands of other prepaid customers could also lose their money if they cancel, the lawsuit said.
The company also falsely claimed to use its own crematoriums when in fact it contracted with others and illegally accelerated payments when customers died, among other misleading business practices, the lawsuit said.
Beth Dombrowa, a spokeswoman for Neptune and its parent company, Texas-based Service Corporation International, said she could not immediately comment. The lawsuit also names subsidiary Trident Society.
The company and its subsidiaries are North America’s largest provider of funeral, cremation and cemetery services.
Attorney General Xavier Becerra and three San Francisco Bay Area district attorneys said they broke California law by failing to hold in a fully refundable trust more than $100 million customers paid for the cremation plans.