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What is this lawsuit about?

The lawsuit alleges that the City of Los Angeles improperly included the Service Establishment Charge (“SEC”) and the Customer Charge in its calculation of the gas utility user tax ("GUT"). The lawsuit contends that the City may only calculate the GUT on the line item for the gas commodity. The City denies the allegations, and the parties have agreed to a settlement to avoid the expense, delay, and risk of continued litigation.

The Court authorized the Notice because Class Members have a right to know about the proposed settlement of this class action lawsuit, including the Settlement benefits, and about all of their options under the Settlement, before the Court decides whether to grant final approval of the Settlement.

Who is included?

You are a “Class Member” and will automatically receive benefits from this Settlement if you are a Southern California Gas Company natural gas customer who was charged the GUT (described as the line item “Los Angeles City Users Tax” on the Southern California Gas Company’s natural gas bill) that had a billing period that includes at least one day that falls on or after April 16, 2014 through the present.

The Court supervising this case has granted Preliminary Approval to the Settlement, but must still decide whether to grant Final Approval before the Settlement becomes final. The Final Fairness Hearing to decide whether to grant Final Approval of the Settlement is scheduled to take place on March 17, 2021.