Included in the suit is Airleaf owner Carl Lau.
Filed in Morgan Circuit Court, the suit seeks as much as $5,000 in penalties per violation. The Attorney General's Office said it is aware of at least 120 Airleaf customers due restitution.
Airleaf's failure to honor the contracts dates to at least January 2006, the Attorney General's Office said today.
The controversy has sparked several Web sites and blogs devoted to criticism of the company and Lau.
Telephone calls placed to the company by IBJ were not answered.