New York Attorney General Eliot Spitzer has sued H&R Block for fraudulently marketing more than 500,000 individual retirement accounts because it didn't disclose hidden fees. Further, 85% of these customers actually lost money in these IRAs because the interest rates were actually lower than the fees they paid, Spitzer's lawsuit, filed with the New York Supreme Court in Manhattan, charged.

"The conduct is particularly appalling because many of those hardest hit were working families who struggle to save," Spitzer said. "Instead of providing these families with accurate information that would have allowed them to make informed choices, H&R Block steered them into retirement accounts that actually shrank over time."

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