A proposed settlement is pending in a lawsuit challenging the late payment charges (“LPCs”) of Frontier California Inc. (formerly known as Verizon California Inc.) (“Defendant”). The lawsuit is known as Gastelum v. Frontier California, Inc., Case No. CGC-11-511467, and is pending in the San Francisco County (California) Superior Court.
WHO’S INCLUDED? This settlement concerns all persons who Defendant assessed an LPC for California residential telephone service that was paid from December 1, 2008, through February 21, 2018 (“Class Period”).
WHAT IS THE CASE ABOUT? The lawsuit claims that Defendant’s LPCs are an unlawful contractual penalty under California Civil Code § 1671(d), and that in charging the LPCs Defendant violated provisions of California consumer protection law. Defendant denies any wrongdoing, but has agreed to settle the lawsuit to avoid the cost and expense of further litigation. The Court has not made a decision regarding liability in the case. During the Class Period the Settlement Class paid approximately $45 million in LPCs.
WHAT DOES THE SETTLEMENT PROVIDE? Defendant agrees (1) to provide a Settlement Fund of $10.6 million to compensate Settlement Class Members, award class representatives, and pay costs and expenses; (2) to submit to an injunction to cap its LPCs at no more than the greater of $1.30 or 1.5% of the unpaid
balance for two years; (3) to submit to an injunction to credit the bills of all Settlement Class Members on whom it erroneously assessed late payment charges by the difference between the amount so assessed and the greater of $2.50 or 1.5%; and (4) to pay up to $3.9 million, subject to Court approval, in attorney’s fees separate and apart from the Settlement Fund.
HOW DO I GET A PAYMENT? Current customers of Defendant do not need to submit a claim and will receive a credit to their bill. Former customers of Defendant will need to submit a claim to share in the recovery. The average estimated payout is approximately $[Avg. Recovery], assuming all eligible claims are submitted. Your recovery will be based on the amount of LPCs you paid. Claim forms are available at www.lpcsettlement.com and must be submitted online or mailed to Gastelum v. Frontier Calfornia Inc., P.O. Box 404041, Louisville KY 40233-4041. Claim forms must be postmarked or submitted by June 21, 2018.
WHAT ARE YOUR OPTIONS? You have three options: (1) remain in the settlement class and give up any rights to sue Defendant separately about these same legal claims; (2) request to be excluded from the settlemnent class; (3) object to the Settlement, to Class Counsel’s application(s) for attorney’s fees, costs, expenses and/or incentive awards, and/or to the entry of the proposed Final Approval Order. Requests for exclusion and Objections must be postmarked by June 21, 2018 and sent to Gastelum v. Frontier Calfornia Inc., P.O. Box 404041, Louisville KY 40233-4041.
If you file a Claim, object to the Settlement or do nothing, you are choosing to stay in the Settlement Class and will be legally bound by all orders of the Court. If you do not want to be legally bound by the Settlement or receive any benefits from it, you must request exclusion. More information about how to object or request exclusion from the Settlement can be found in the Notice available here.
If you are a former customer, click here to file a claim
If you are a current customer, you DO NOT need to file a claim
|Case Relevant Event||Date|
|If you are a Former Custmer, you must submit a Claim Form by||June 21, 2018|
|Current Customers as of June 21, 2018 do not need to submit a Claim Form|
|Submit an Objection by||June 21, 2018|
|Ask to be Excluded by||June 21, 2018|
|Fairness Hearing||July 20, 2018 at 9:00 a.m.|