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DirecTV has agreed to establish a fund of $9.4 million to settle a class action lawsuit that claimed the company intentionally set up minority-owned small businesses with residential accounts so the company could later fine them for using those accounts for their businesses.ย
The settlement class is made up of all businesses and business owners in the United States who had DirecTV services installed in their commercial establishment, who were subsequently audited by Defendant Signal Auditing Inc. and who at any time from Aug. 4, 2012, through Aug. 23, 2022, received communications from the Lonstein Law Offices PC or Wayne Lonstein or Julie Cohen Lonstein on behalf of DIRECTV seeking money for allegedly unauthorized use of DirecTV licensed programming, including NFL Sunday Ticket or any other DirecTV-related programming.
The lead plaintiffs in the lawsuit were owners of a barber salon, a lounge, a cafe, a smog test center and a restaurant, respectively. The business owners alleged they purchased television programming from DirecTV, then were contacted by the Lonstein Law, claiming they were displaying DirecTV programming in a commercial setting without a license to do so.ย
The complaint alleged DirecTV was perpetuating a โschemeโ that included โsignal auditingโ solely for the purpose of โfunneling auditsโ to a company called Signal Auditing, which is owned and controlled by associates of the Lonstein Law Office.ย
DirecTV allegedly would sell residential plans to small-business owners, and install equipment at the business locations, without telling the customers that doing so could result in hefty fines under the federal Communications Act of 1934, which include damages to the law office and DirecTV.ย
Further, the plaintiffs, according to the DirecTV lawsuit, were misled to believe an โauditor reportโ indicates โproofโ of the allegation. The lawsuit states โmembers of the scheme work in concert to target minority business districts where DirecTV installers have previously solicited.โ The auditors would pose as customers, ask to change the TV Channel to find a DirecTV program that would violate the Communications Act and secretly take photos or video recordings.ย
The lawsuit claims the Lonsteins had no intention of actually filing litigation, but instead โthreaten to do so for tactical purposes, to instill fear and increase Scheme proceeds.โย
Demand or โclaimโ letters would allegedly warn of damages and attorney fees of between $25,000 and $100,000. After the initial shock amount, the company would then attempt to obtain between $10,000 and $20,000 from the business, plus a long-term commitment as a DirecTV commercial customer.
DirecTV is primarily a digital satellite television programming service launched in 1994. It is based in El Segundo, California.
The company denies wrongdoing, asserting it complied with the law at all times.
The net settlement fund will be divided among class members based on the dollar amount that was paid to the Lonstein Law Office.ย
Those who paid either nothing or less than $25 will received a fixed-sum payment of $25.ย
The remainder of the net settlement fund will be distributed on a pro rata basis to the remaining class members. Payment amounts will be calculated based on the amount of money each class member paid to Lonstein Law Office.
Class members will have 180 days to cash their check after it is issued; any funds remaining in the settlement fund 60 days after those checks expire will be distributed on a pro rata basis to those who cashed their initial check.
Class members may check their award amount on the settlement website.
Those whose settlement award payment is more than $599 should visit the settlement administratorโs site and fill out a Form W-9 for their business. This must be done before the check can be mailed.
Those wishing to update their address information should fill out the form on the settlement site.
Class members may also opt out of the settlement online or file an objection in writing by Dec. 11, 2022.ย
A final fairness hearing in the DirecTV lawsuit settlement has been set for Jan. 6, 2023.ย
There is no claim form. Class members will be contacted directly but will receive a payment if they do nothing.ย
Whoโs Eligible
All businesses and business owners in the United States who had DirecTV services installed in their commercial establishment, who were subsequently audited by Defendant Signal Auditing Inc. and who at any time from Aug. 4, 2012, through Aug. 23, 2022, received communications from the Lonstein Law Offices PC or Wayne Lonstein or Julie Cohen Lonstein on behalf of DIRECTV seeking money for allegedly unauthorized use of DirecTV licensed programming, including NFL Sunday Ticket or any other DirecTV-related programming.
Potential Award
Varies
Proof of Purchase
No proof of purchase applicable
Objection and Exclusion Deadline
12/11/2022
Case Name
Perez v. DirecTV Group Holdings LLC, et al. Case No. 8:16-cv-01440-JLS-DFM, in the U.S. District Court for the Central District of California
Final Hearing
01/06/2023
Settlement Website
Claims Administrator
Settlement Administrator
Perez v. DirecTV Group Holdings LLC, et al.
P.O. Box 26170
Santa Ana, CA 92799
[email protected]
866-606-5908
Class Counsel
Katherine J Odenbreit
MAHONEY LAW GROUP APC
Lisa L Clay
LISA L CLAY ATTORNEY AT LAW
Defense Counsel
Matthew H Marmolejo
MAYER BROWN LLP
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37 thoughts onDirecTV small business accounts $9.4M class action lawsuit settlement
Just love all those people who โadd meโ. Think it is very few people that would qualify. I am really surprised of this ruling. When the system was installed it was very clear it is a business. A smog check station? That is just someone waiting a half hour. Same thing with barber shop. Otherwise it is just something for the owner to watch during his/her down time. โMaybeโ a motel should have to pay a higher charge, but the name alone should show it was a business.
I had direct tv at one point until I changed.
Please add me
I am eligible please add me