Information and Alerts

Government Actions 1

Federal Trade Commission v. iBackPack of Texas LLC and Douglas Monahan

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.  

On May 6, 2019 the Federal Trade Commission filed a complaint against iBackPack of Texas LLC and Douglas Monahan in The United States District Court for the Southern District of Texas Galveston Division. Charges filed allege the business raised over $800,000 through four crowdfunding campaigns, falsely claiming the funds would be used to develop products, including the “iBackPack” which would incorporate batteries to charge laptops and phones. The FTC alleges Doug Monahan did not use the crowdfunding contributions to produce the products, but instead spent most of the money on personal expenses and marketing to raise additional funds.

On March 26, 2020 iBackPack of Texas entered into a Settlement with the FTC. Under terms of the settlement, Monahan is permanently banned from engaging in any future crowdfunding activities and from misrepresenting his ability to deliver any good or service or the terms on which he will provide a refund. In addition, he has agreed to a judgment totaling nearly $800,000, which will be suspended due to Monahan’s inability to pay. The entire amount will be due if he is found to have misrepresented his finances.

For more details, visit: https://www.ftc.gov/system/files/documents/cases/ibackpack_052-1_proposed_stipulated_order.pdf.

Government Actions 2

State of Texas v. iBackPack of Texas, LLC and Douglas W. Monahan

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the government’s allegations. Which have not yet been proven.

On May 6, 2019 The State of Texas through the Attorney General of Texas filed a lawsuit against iBackPack of Texas, LLC and Douglas W. Monahan in Travis County. Charges filed allege the defendants are in violation of the state’s Deceptive Trade Practices Act. The lawsuit seeks restitution for consumers, civil penalties, and attorney’s fees. The matter is pending. For more details, visit: https://www.texasattorneygeneral.gov/sites/default/files/images/admin/2019/Press/POP%20w%20Exhibits%205.6.19.pdf.