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This settlement is closed!
Please see what other class action settlements you might qualify to claim cash from in our Open Settlements directory!
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. Â 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 Deadline
06/19/2016 Â (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 Â (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
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
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17 thoughts onLos Angeles Telephone Tax Class Action Settlement
any update on this?
ATTENTION: UPDATE AS OF AUGUST, 2018
The administrator is in the process of adjudicating the claims and circulating deficiency notices to claimants where additional action is required to evaluate their claims. It is currently anticipated payments will commence in October, 2018 but please be sure to check this site regularly for any additional future updates.
Website says:
ATTENTION: UPDATE AS OF 01/09/2018
The Claims Administrator recently completed the collection of UUT data from telephone carriers with respect to Settlement Class Members who consented to such searches. The Claims Administrator is now analyzing the data and reviewing all claims. At the conclusion of that process, the Claims Administrator will send notices of deficiency to any claimants who need to submit further information or documents. This process will take time, and is necessary to ensure fair distribution of the Settlement funds. Please be patient.
We spent quite a bit of time putting a spreadsheet together and photocopying the old bills which were submitted with the claim forms. This packet was submitted about a year ago, well before the June 19, 2016 deadline. At the time we had 5 phone lines so the Utility Tax collected by City of LA was over $500 dollars. We haven’t heard anything since. We are beginning to wonder if this was bogus and a waste of time. We haven’t seen any settlement money yet and this is April 10 2017
NOTHING as of March 28, 2017… been waiting since 2015. :-(
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.
I wonder if this is the same settlement that had been going on I think it was called Newabueze vs at&t These people are the ones I thought had already settled since they sent me a Post Card back in I think it was 10-2015 that inthe spring of 2016 they would be sending out checks I have seen nothing they said they have never received my form which I know I did on line. Now this Ardon group sends me a letter to mail that instead to get more Money I dont get whats going on. But I think its several different people handling these claims and this was back in May but when you call that number you cant speak to anybody an the machine says checks are to mailed at the end of May 2016 So I guess Ill see a check I happen to still be with at&t been with them for the past 25 years so I know I sent that form.
UPDATE 6/1/16: The Court has approved an extended claim form deadline in this class action settlement. The new date is below. Â Exclusion and Objection deadlines and the Final Hearing dates remain the same.
Residential Landline Service
UPDATE: The Court has approved extended deadlines in this class action settlement. The new dates are as follows: