I just learned, though an update at Writer Beware’s blog, that a class action has been filed against All Romance eBooks and Lori James, in Florida (where the company is/was registered).
In layman’s terms (sorta–IANAL, after all), the point here is that when a business closes its doors with barely four days notice, and basically refuses to disburse commission monies (royalties) for products it sold, this breach of contract is grounds for legal action–and, with any luck, a criminal investigation may follow.