Peoples Benefit Services Inc. apparently doesn't live up to its name.

In a lawsuit and special injunction filed Tuesday in Commonwealth Court, the state has accused the Pennsylvania-based company of deceiving thousands of mostly older consumers.

It said the Delaware County firm did so by falsely implying that its discount drug cards and other products are government-endorsed insurance plans that offer "members" significant savings on prescription drugs, family medical and/or dental "coverage."

State Attorney General Tom Corbett said in a news release that the injunction asks the court to prohibit the company from advertising, promoting and selling its products and memberships to senior citizens and Medicare recipients in a deceptive manner.

He said the injunction also seeks to prevent thousands of consumers from purchasing the company's drug cards that are being sold under the name "Senior Rx Discount Program." He said the cards are being "deceptively marketed to replicate government-approved Medicare Part D Prescription Drug Plans."

Mr. Corbett said enrollment for the government-approved drug coverage is scheduled to begin Nov. 15.

"Failure to enroll in the true government-approved programs could result in the loss of critical drug coverage and benefits or a requirement to pay a penalty for delayed enrollment," he said.

The lawsuit, joined by the attorneys general of Arkansas, Illinois and Massachusetts, asks the court to order Peoples Benefit Services to comply with all applicable state and federal laws, and to stop conducting business in all four states until it issues full refunds to consumers and pays civil penalties of $1,000 per violation and enhanced fines of $3,000 to each victim 60 or older.

Commonwealth Court has scheduled a hearing for 10:30 a.m. Monday.

"Prescription drug coverage is the biggest change to the Medicare program in the last 40 years," Mr. Corbett said. "It is no coincidence that the defendant's drug cards are being advertised as being 'look-a-likes' to the federal government approved plans that will begin accepting enrollees in two weeks.

"My colleagues and I are convinced that this was a pre-planned and calculated marketing strategy, specifically designed to deceive and mislead consumers who want the government-approved card."

Mr. Corbett said this is the third time in four years that the company has been investigated. He said the inspector general of the Social Security Administration obtained a cease-and-desist order against it in 2003 for violating federal law by creating the false impression that its ad was approved, endorsed or affiliated with the government.

He said the company has marketed plans under the names "Senior Security Prescription Plan," "Senior Security Supplement Initiative," "Veterans Life Family Health Plan" and "Senior Security Dental Plan."

Mr. Corbett said consumers who want to file complaints against Peoples Benefit Services should call the toll-free hot line, 1-877-888-4877, to obtain a complaint form. The forms also can be filed electronically by visiting www.attorneygeneral.gov.

The company couldn't be reached for comment.