CitiStorage Class Action Settlement
This webpage is intended to provide you an opportuninty to read the full Settlement Agreement, and to highlight for you the terms of the proposed settlement of a class action on behalf of storage customers of CitiStorage, LLC.
Nature of Class Action: This class action lawsuit arises from CitiStorage’s practice of charging a 2% surcharge for late payments. The Plaintiff alleges that the Company’s invoices and remittance sheets are misleading because the total amount due does not clearly indicate that if paid before the due date the 2% surcharge is not owed, the Company does not properly credit customers for surcharges paid before the due date, and further that the invoices are sent with insufficient time for customers to make timely storage payments. Defendants deny all wrongdoing and liability. Both sides have agreed to settle the lawsuit to avoid the cost and uncertainty of litigation. The proposed Settlement Class includes CitiStorage customers whose bills provided for the payment of a late fee since Aug. 1, 2005. If the Court approves the Settlement, class members will be bound by the approved Settlement unless they exclude themselves by submitting a request to opt-out of the case as described in the notice sent to class members.
Settlement Benefits and Claims Process: To settle the action, CitiStorage has agreed that it will:
(1) Refund 90% of late fees paid on invoices dated Aug. 1, 2008 through Feb. 28, 2014 that were paid by the end of the month in which each invoice was sent, up to a collective maximum of $119,500. Class members will automatically receive a refund for late fees paid during this period, and do not need to do anything to receive their refund. CitiStorage will calculate your refund based on its records.
(2) Refund $5 to each customer for whom a late-fee line appeared on at least one invoice dated between Aug. 1, 2005 and July 31, 2008, up to a collective maximum of $80,000. CitiStorage will determine whether a late-fee line appeared on at least one invoice for class members during this period based on its records, and if so class members will automatically receive a $5 refund for late fees paid during this period. Class members do not need to do anything to receive a refund.
(3) Modify its billing practices as of Feb. 28, 2014, such that (a) CitiStorage shall make best efforts to ensure that invoices are mailed to Settlement Class Members on the first or the second business day of each month; (b) CitiStorage shall modify its invoices and remittance sheets to clearly indicate on the invoice the total amount due absent a surcharge, and to clearly identify the surcharge on the remittance sheet; and (c) in instances in which a customer pays the total amount of an invoice, including the surcharge, but payment is received on or before the fifteenth day of the month, CitiStorage shall credit the customer’s account in the amount of the surcharge, which will result in an estimated $80,000 reduction in late fees collected by the Company during the first three years after the change based on the Company’s historical records.
(4) Pay the costs of notice to the Class and administration of the proposed Settlement.