Johnson Utilities Rate Increases $10.35M Class Action Settlement

Johnson Utilities agreed to pay $10.35 million as part of a utility rates settlement to resolve class action lawsuit claims of unlawful increases in its water and wastewater rate.

The settlement benefits Johnson Utilities customers who paid the company for water and/or wastewater services between Oct. 1, 2011, and Dec. 14, 2021. This Class includes former customers and current customers who now receive services from EPCOR Utilities.

Johnson Utilities is a water and sewer company that served the San Tan Valley in Arizona. In 2021, after decades of problems such as sewage spills, water quality issues, and a range of lawsuits, EPCOR USA purchased the utility, AZ Central reported. EPCOR took over management of the utility in 2018 after the Arizona Corporation Commission forced Johnson Utilities to hand over management responsibilities.

A class action lawsuit from Johnson Utilities customers accused the company of bribing state officials in order to raise the price of water and wastewater services. These increased rates never would have happened without Johnson Utilities’ alleged bribery, the plaintiffs contend. The class action lawsuit argues these price increases violated the law and caused financial damages to the utilities’ customers.

State persecutors attempted to bring similar claims against the utility, accusing both Johnson Utilities and former Arizona Corporation Commissioner Gary Pierce of fraud, bribery, and conspiracy. In 2018, a mistrial was declared in the case after a jury was unable to reach a unanimous verdict, according to AZ Central. 

Class action claims from consumers still remained after this mistrial and, in 2021, Johnson Utilities and other defendants agreed to pay $10.35 million to resolve these allegations.

Under the terms of the utility rates settlement, Class Members will receive around $1.28 for each month they received services from Johnson Utilities. 

Exact payments will vary depending on the amount of time each Class Member spent as a Johnson Utilities customer. Class Members who were customers for the entire Class Period are projected to receive around $169. 

EPCOR’s records will be used to determine how long a customer paid for services.

The deadline for exclusion and objection is March 11, 2022. 

The final approval hearing for the Johnson Utilities rate increases lawsuit settlement is scheduled for March 25, 2022.

Current EPCOR customers will receive their payments automatically, but former customers will need to file a claim by May 16, 2022, to benefit from the utility rates settlement.

Who’s Eligible

The settlement benefits Johnson Utilities customers who paid the company for water and/or wastewater services between Oct. 1, 2011, and Dec. 14, 2021. This Class includes former customers and current customers who now receive services from EPCOR Utilities.

Potential Award

Approximately $169

Proof of Purchase

The settlement administrator may ask Class Members who file a claim to provide additional information as necessary to process the payment due to them.

Claim Form

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

05/16/2022

Case Name

Castillo et al. v. Johnson et al., Case No. 2:17-cv-04688-DLR, in the U.S. District Court for the District of Arizona

Final Hearing

03/25/2022

Settlement Website

JohnsonUtilitiesSettlement.com

Claims Administrator

Johnson Utilities Settlement Administrator
P.O. Box 43501
Providence, RI 02940-3501
info@johnsonutilitiessettlement.com
888-850-0258

Class Counsel

Clinton A. Krislov
Christopher M. Hack
KRISLOV & ASSOCIATES LTD

Jeffrey J. Goulder
Brandon R. Nagy
STINSON LLP

Defense Counsel

Mark C. Dangerfield
Mark A. Fuller
Hannah H. Porter
GALLAGHER & KENNEDY PA

William F. King
BONNETT FAIRBOURN FRIEDMAN & BALINT PC

Daniel E. Fredenberg
Christian C. M. Beams
FREDENBERG BEAMS