So they're a scam and you're still mining there? 
I can live with x1.25 payout, as it will catch up with the lost mining time. But an honest answer from them would be nice. I probably would have stayed there if they were honest even after the extra payouts have stopped.
If you can live with the x1.25 payout then why are you calling them scammers? just because the pool was stuck on a single block for about 2 hours? Every pool has some downtime, start being glad about free extra litecoins instead of insulting them.
Downtime I can live with, no problem at all. But my miners were still hashing and getting accepted shares, if they had failed over thats fine or even if the pool was down then I wouldnt have any power consumptions costs. But they have done SOMETHING with the 40gh/s they had, all I'd like to know is what, that is if it's not a scam?