Settlement Website: JohnsonUtilitiesSettlement.com
Objection Deadline: 03/11/2022
Exclusion Deadline: 03/11/2022
Claim Form: https://kccsecure.com/johnsonutilitiessettlement?_ga=2.111955908.1780193041.1646832016-1935037565.1646832016
Deadline For Submitting Claim: 05/16/2022
Final Hearing Date: 03/25/2022 at 9:30 a.m.
Settlement Amount: $10.35 million
Proof Of Purchase: Class Members filing a claim might be asked by the settlement administrator to provide additional information as required for processing the payment due to them.
Potential Claim Amount: Approximately$169
Johnson Utilities is a sewer and water company serving the San Tan Valley in Arizona. According to a report by AZ Central, ECPOR USA purchased the utility in 2021 following decades of problems like water quality issues, sewage spills, and various lawsuits. Arizona Corporation Commission forced Johnson Utilities to hand over management responsibilities and EPCOR took over the utility’s management in 2018. A $10.35 million class-action lawsuit has been filed against Johnson utilities alleging the company unlawfully increased its wastewater and normal water rate.
This settlement is expected to benefit customers of Johnson Utilities who paid for the wastewater and/or water services between 1st October 2011 and 14th December 2021 received from the company. Both former and current customers presently received services from EPCOR Utilities are included as class members. The plaintiffs in the lawsuit have accused Johnson Utilities of bribing state officials for increasing the price of wastewater and water services. The increased rates would never be possible without the alleged bribery of Johnson Utilities.
As per the class action lawsuit, this price increase was in complete violation of the law and lead to financial damages to the customers. State persecutors accused both Johnson Utilities and former Arizona Corporation Commissioner Gary Pierce of bribery, fraud, and conspiracy by bringing similar claims against them. The jury failed to reach a unanimous verdict leading to the declaration of a mistrial in 2018.
The class action claims from consumers continued after this mistrial and Johnson Utilities alongside other defendants agreed to resolve these allegations by paying $10.35 million. After paying out-of-pocket expenses, attorney’s fees of up to 33.33%, and incentive awards of $500 each to the three class representatives, the balance shall be distributed among class members. As per the settlement terms, class members are eligible to receive approximately $1.28 in the form of a credit on future water/wastewater bills for each month of service received from Johnson Utilities. Former Johnson Utilities customers who have since moved out of the current EPCOR service area will get the money via cheque.
While the exact payment will vary according to the time spent by each class member as a Johnson Utilities customer, class members who remained a customer throughout the class period can expect a payment of around $169. The records maintained by EPCOR will be used to determine the length of period for which a customer paid for services. Current EPCOR customers are not required to file a claim and shall receive payments automatically. However, the former ones will have to file a claim within 16th May 2022 to benefit from this settlement.
