October 27, 2016 – The Superior Court of California for the County of Los Angeles granted final approval to a $92.5 million settlement in a decade-long class action seeking telephone tax refunds on behalf of taxpayers in the City of Los Angeles.
The lawsuit, Ardon v. City of Los Angeles, was filed in 2006 challenging the City’s imposition of a Utility Users Tax (“UUT”) on long distance, mobile, and other telephone services. In 2011, the plaintiff won a landmark appeal in the California Supreme Court holding that taxpayers can bring class action claims for tax refunds under the California Government Code.
The settlement provides for refunds of up to 100% of the tax collected on mobile telephone service, and up to 70% of the tax collected on residential service. Additional information is available on the settlement website at www.LATaxRefund.com.
Ardon is represented by Nicholas E. Chimicles and Timothy N. Mathews of Chimicles Schwartz Kriner & Donaldson-Smith LLP (CSK&D), along with their co-counsel Wolf Haldenstein Adler Freeman & Herz LLP, Cuneo Gilbert & LaDuca, LLP, and Tostrud Law Group, PC.