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This settlement is closed!
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A $32.5 million settlement will end claims that Los Angeles improperly charged city residents a Public Purpose Surcharge and a State Regulatory Fee on gas bills.
Class Members include customers of Southern California Gas Company who were charged a “Los Angeles City Users Tax” on their natural gas use between Dec. 12, 2012 and April 12, 2019.
The Los Angeles gas tax class action lawsuit alleged that the City, through Southern California Gas Company, inflated fees for city residents. Charges were illegally increased, according to the lead plaintiff, by the use of non-gas fees in the tax calculation.
According to the class action lawsuit, LA residents were assessed a 10 percent fee based on the amount of gas they used.
However, the City began basing the fee on a State Regulatory Fee and Public Purpose Surcharge – resulting in more than $30 million in extra, unfair taxes from city residents.
The plaintiffs said that she wrote the City demanding a refund of the unfairly assessed gas tax amounts, but was denied.
The City of Los Angeles denies the allegations in the class action lawsuit, but has agreed to settle to avoid the time and expense of future litigation.
Under the terms of the settlement, Los Angeles has agreed to remove the allegedly illegal tax amount based on the State Regulatory Fee and Public Purpose Surcharge at issue in the class action. With this, the City estimates that Los Angeles gas customers will save $6.18 million per year.
The settlement fund will be automatically awarded to LA residents who were Southern California Gas company members in the form of a reduced natural gas tax bill for 36 months.
The tax abatement will be between five and 10 percent. In addition, the City will make a $400,000 donation to the Alliance for Children’s Rights, a non-profit charitable organization.
The deadline to object to or opt out of the Los Angeles gas tax class action lawsuit is Aug. 19, 2019.
Who’s Eligible
Class Members include “any person or entity to whom a natural gas invoice from Southern California Gas Company was addressed and who was charged the City of Los Angeles’ natural gas utility user tax (described as the line item ‘Los Angeles City Users Tax’ on the Southern California Gas Company’s natural gas invoice) during a billing period” between Dec. 12, 2012 and April 12, 2019.
Potential Award
Reduced tax rate.
“Distributions will be made by applying a reduced Los Angeles City Users Tax rate for retail customers of Southern California Gas Company (who are subject to the tax) beginning within 90 days after the Settlement becomes final and continuing for up to 36 months.”
Proof of Purchase
None
FAQs
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
N/A. The deadline to exclude yourself or object to the settlement is Aug. 19, 2019.
Case Name
Alexandra Lavinsky v. City of Los Angeles, Case No. BC542245, in the Superior Court of the State of California, County of Los Angeles
Final Hearing
10/09/2019
Settlement Website
Claims Administrator
Lavinsky Settlement Administrator
c/o KCC Class Action Services LLC
P.O. Box 404133
Louisville, KY 40233-4133
1-866-680-6140
info@LAGasTaxSettlement.com
Class Counsel
AHDOOT & WOLFSON PC
LAW OFFICES OF PAUL G. KERKORIAN
Defense Counsel
THE OFFICE OF THE LOS ANGELES CITY ATTORNEY
COLANTUONO HIGHSMITH & WHATLEY PC
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74 thoughts onLos Angeles Gas Tax Class Action Settlement
I am a Class Member in the LAGasTax Settlement. Was I compensated for the over taxing by a reduced billing amount during the 90 day Abatement Period?
My address is 1864 Benedict Canyon Drive, Beverly Hills (BHPO), CA.