Los Angeles Telephone Tax Class Action Settlement

A class action settlement has been reached between the City of Los Angeles and residents who paid telephone utility user taxes between 2005 and 2008. Eligible Class Members can claim refunds of between $30 and $50 or more if the settlement is granted final approval.

According to the Los Angeles telephone tax class action lawsuit filed in December 2006, the city unlawfully charged local residents and businesses a 10 percent telephone tax.

The class action settlement will resolve claims brought forth by plaintiff Estuardo Ardon that Los Angeles violated the Federal Excise Tax (FET) by improperly charging consumers and businesses this tax. The tax was allegedly applied to mobile telephone services, residential landline services and business landline services between October 2005 and March 2008.

Ardon alleges that prior to March 15, 2008, the Los Angeles telephone tax should only have been applied to local telephone services and long distance services where the charges for these placed calls would vary by both time and distance.

The city of Los Angeles denies all wrongdoing but agreed to settle the class action lawsuit in order to avoid the uncertainty of further litigation and court costs.

The city will pay $92.5 million to end a case that has lasted for nearly a decade in litigation.

A California federal judge preliminarily approved the deal in August.

UPDATE 6/1/16: The Court has approved an extended claim form deadline in this class action settlement. The new date is below.  Exclusion and Objection deadlines and the Final Hearing dates remain the same.

• Claim Form Deadline: June 19, 2016
• Exclusion Deadline: July 28, 2016
• Objection Deadline: July 12, 2016
• Final Hearing: October 5, 2016

UPDATE 2: On Dec. 2, 2019, Top Class Actions viewers started receiving checks from the Los Angeles telephone tax class action settlement worth as much as $260. Congratulations to everyone who filed a claim and got PAID!

Who’s Eligible

You are a Class Member of the Los Angeles telephone tax class action lawsuit if you are an individual, which includes corporate and non-corporate entities, who paid a telephone tax or taxes to the City of Los Angeles for a residential landline service, business landline service and/or mobile telephone service during the Class Period of Oct. 19, 2015, and March 15, 2008.

Potential Award

$30 – $50 depending on kind of telephone service you used during the Class Period.

Compensation for those seeking a Standard Refund are as follows:

$50 – Mobile Telephone Service

$30 – Residential Landline Service

$50 – Business Landline Service

If you would like to claim an Actual Refund, then amount will depend on taxes you were assessed by the city of Los Angeles.

Proof of Purchase

In order to claim a Standard Refund from the Los Angeles telephone tax class action settlement, you must submit a complete claim for online or mail in a completed claim form postmarked no later than May 20, 2016.

If you would like to claim an Actual Refund from this settlement, then you must complete the claim form and include proof of the tax paid.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

06/19/2016  (NEW DEADLINE UPDATED 6/1/16)

Case Name

Ardon v. City of Los Angeles, Case No. BC363959, in the U.S. District Court for the Northern District of California.

Final Hearing

10/05/2016  (NEW DATE)

UPDATE: On October 26, 2016, the Los Angeles Telephone Tax settlement received final approval from the court.  Let Top Class Actions know when you receive a check in the comments section below or on our  Facebook page.

Settlement Website

www.LATaxRefund.com

Claims Administrator

Ardon v. City of Los Angeles Claims Administrator
P.O. Box 30196
College Station, TX 77842-3196
1-888-643-6490

Class Counsel

WOLF HALDENSTEIN ADLER FREEMAN & HERZ, LLP
CHIMICLES & TIKELLIS, LLP
CUNEO GILBERT & LADUCA, LLP
TOSTRUD LAW GROUP, PC

Defense Counsel

HOGAN LOVELLS US, LLP