Both settlements give the FTC the right to reopen the orders in the event the defendants misrepresented their financial condition. Finally, the settlements include various reporting requirements necessary to assist the FTC in monitoring the defendants' compliance. The Commission vote to approve these settlements for filing in court was 5-0. They were filed in the U.S. District Court for the Central District of California, in Los Angeles, on Nov. 25. These agreements are for settlement purposes only and do not constitute admissions by the defendants of law violations.
Settlements have the force of law when signed by the judge.