<p>The Texas attorney general filed a consumer-fraud lawsuit Monday against Friedman's Inc., the nation's third-largest jewelry chain, which is already under federal investigation for its accounting practices.</p><p>Attorney General Greg Abbott said the company misled customers about the level of "required" insurance coverage when applying for installment credit on purchases.</p><p>Abbott said Friedman's pressured low-income customers to sign up for loan-protection insurance without being clear that the coverage was optional. Company employees failed to disclose the cost of the coverage, he said.</p><p>The attorney general is seeking civil penalties of up to $20,000 per violation of state laws against deceptive trade practices, plus legal fees and restitution for customers.</p><p>An attorney for the Savannah, Ga.-based company didn't immediately return a call for comment.</p><p>Friedman's has more than 600 stores in about 20 states, including 65 in Texas.</p><p>Friedman's has been named in class-action lawsuits and placed under federal investigation since it announced in late 2003 that it would restate financial results from 2000 through 2003 because of concern about how it accounted for bad debt and losses. The company disclosed in October that the Securities and Exchange Commission may recommend revoking or suspending its shares, which were delisted by the New York Stock Exchange.</p><p>The company has shaken up its board and seen the departure of two chief financial officers since announcing since the accounting controversy began.</p><p>The shares were at $1.37, down less than a penny, in afternoon over-the-counter trading. They peaked above $17 in September 2003.</p><p>___</p><p>On the Net:</p><p>HASH(0x2865bec)</p><p>HASH(0x2865c94)</p>
