Southern California Gas Company natural gas customers may be affected by a class action settlement

LOS ANGELES, May 3, 2019 /PRNewswire/ -- Ahdoot & Wolfson, PC and the Law Offices of Paul G. Kerkorian announce that a settlement has been reached with the City of Los Angeles (the "City" or "Defendant") in a class action lawsuit claiming City improperly included in its natural gas utility user tax calculation charges known as the Public Purpose Surcharge ("PPS") and the State Regulatory Fee ("SRF"). The lawsuit contends that the City may only calculate the Los Angeles City Users Tax on the amount of natural gas used, and not on the PPS and SRF. The City denies the allegations, and the Court did not issue a final decision in favor of either Plaintiffs or Defendant. Instead, the parties agreed to a settlement to avoid the expense and risk of continued litigation.

You are a "Class Member" if you are a Southern California Gas Company ("SCGC") natural gas customer who was charged the City of Los Angeles' natural gas utility user tax (described on the SCGC natural gas bill as the line item "Los Angeles City Users Tax") with a billing period that includes at least one day that falls on or after December 12, 2012 through April 12, 2019.

As part of the Settlement, the City has agreed to stop imposing the Los Angeles City Users Tax on the PPS and the SRF, unless such a tax is approved by voters in the future, if ever. This change will result in estimated $6.18 million of tax savings per year. The City has also agreed to create a $32,500,000 Settlement Fund, that, after deducting settlement administrative expenses, court-approved service payments, a payment to a non-profit charitable organization known as the Alliance for Children's Rights, and court-approved attorneys' fees and expenses, will be distributed by applying a tax abatement (i.e., a reduced Los Angeles City Users Tax rate for SCGC customers who are subject to the Los Angeles Users Tax).

If you are included in the Settlement, you may choose to do nothing, or object to the Settlement and notify the Court that you or your lawyer intend to appear at the Court's Final Fairness Hearing, or exclude yourself from the Settlement.

The Court will hold a hearing in this case (Lavinsky v. City of Los Angeles, et al., Case No. BC542245) at 10:00 a.m. on October 9, 2019 at Department 11 of the Superior Court of California, County of Los Angeles, 312 North Spring Street, Los Angeles, California, 90012. If you are a Class Member you may attend this hearing and request to be heard.

For more information go to www.LAGasTaxSettlement.com or call 1-866-680-6140.

SOURCE Ahdoot & Wolfson, PC and the Law Offices of Paul G. Kerkorian