Spitzer sues H&R Block over high-fee IRAs

New York Attorney General Eliot L. Spitzer has filed a lawsuit against H&R Block Inc. alleging the tax-preparation company defrauded customers by urging them to invest tax refunds in IRA accounts with high fees. According to the lawsuit, which seeks $250 million in damages, 80% of investors in the IRAs paid more in fees than they earned in returns. H&R Block CEO Mark Ernst immediately refuted Spitzer's allegations, saying the Express IRA program is "absolutely, fundamentally sound."

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