North Carolina Dell Sales Tax Class Action Settlement

North Carolina purchasers of an Optional Maintenance Agreement for a Dell computer product may qualify for benefits under the terms of a class action settlement.

The settlement provides qualifying Class Members with reimbursements for North Carolina sales or use taxes collected by Dell and its related companies on the purchases of these Optional Maintenance Agreements.

An “Optional Maintenance Agreement” is a maintenance plan that covers the cost of repair and replacement services for computer hardware. Plans like this are sometimes offered for sale in conjunction with the purchase of new computer hardware.

This Dell class action settlement began as a lawsuit filed in April 2003 by plaintiff Zack Starritt. Starritt alleged that defendant Dell Inc. and several related defendants incorrectly charged North Carolina sales or use tax on the purchase of Optional Maintenance Agreements. He raised claims under North Carolina common law and the state’s Unfair and Deceptive Trade Practices Act.

Originally filed as a lawsuit in North Carolina state court, Starritt’s claims were later deferred to private arbitration conducted by the CPR International Institute for Conflict Prevention & Resolution.

In April 2007, the CPR tribunal certified a claimant Class of more than 47,000 claimants. Notice was distributed to Class Members in June 2008. By March 2009, the CPR tribunal formally determined that Dell’s Optional Maintenance Agreements are not taxable.

The parties entered into the current Dell class action settlement in December 2016. The settlement provides for reimbursement of the total tax paid on Optional Maintenance Agreements from April 15, 1999 through Dec. 31, 2008, plus interest. Claims must be filed online through the settlement website.

Dell and the other respondents believe they have valid legal defenses to the claims raised by Starritt and the Class. The companies say they agreed to the Dell class action settlement solely to avoid the expense, inconvenience and burden of continuing the litigation.

Class Members can opt out of the settlement or object to its terms by filing a written request no later than Feb. 5, 2018.

Who’s Eligible

According to the Detailed Notice, the Settlement Class includes “all persons and business entities

(a) who purchased from one or more of Respondents at least one Optional Maintenance Agreement, as defined in paragraph 1 above [in the Detailed Notice],

(b) whose ‘ship-to’ address for such purchase was a location in the State of North Carolina,

(c) who, from April 15, 1999 through December 31, 2008, paid any amount of money denominated as a ‘tax’ calculated in whole or in part on the charge for the purchase of such Optional Maintenance Agreement,

(d) who have not received a refund of such ‘tax’ money in connection with a return of the Dell-branded hardware and who were not eligible to receive a refund of such ‘tax’ money pursuant to North Carolina General Statutes 105-161.14, and

(e) whose purchase was governed by a contract containing a clause calling for arbitration administered by the CPR Institute for Dispute Resolution.”

This Settlement Class covers 47,588 known persons and business entities who have been sent notice of their class membership. Persons and businesses who are not sure if they qualify as Class Members are encouraged to contact the settlement administrator to confirm.

Potential Award

Varies.

The settlement provides for reimbursement of the total tax paid on Optional Maintenance Agreements from April 15, 1999 through Dec. 31, 2008, plus interest.

Each Short Form Notice sent out to known Class Members shows a Preliminary Settlement Amount that represents the total amount of relevant taxes collected from that Class Member, according to Dell’s records.

An amount to cover interest will be added to that Preliminary Settlement Amount to get the Final Settlement Amount, which is the amount Dell will pay if the Class Member submits a timely and valid claim.

Proof of Purchase

The online Claim Form requires claimants to submit the Dell Customer Claim Number and Password provided on the Short Form Notice and Individual Summary they received in the mail.

Claim Form

CLICK HERE TO FILE A CLAIM »

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

4/2/2018

Case Name

Zack B. Starritt, et al. v. Dell Inc., et al., before the CPR International Institute for Conflict Prevention & Resolution

Final Hearing

3/6/2018

Settlement Website

www.NCTaxSettlement.com

Claims Administrator

Dell North Carolina Tax Settlement
Settlement Administrator – Epiq Systems Inc.
P.O. Box 4079
Portland, OR 97208-4079
info@NCTaxSettlement.com

Class Counsel

WILLIAM W. PLYLER PLLC

MILLER MONROE & PLYLER PLLC

ELLIS & RAPACKI LLP

Defense Counsel

John A. Shope
FOLEY HOAG LLP