| Class Action Settlements in Houston |
| 09.11.09 | |
Every year, billions of dollars of class action settlements are not claimed.
A three-figure number of companies is involved in class action lawsuits every year. Class action lawsuits are a sizable and burgeoning source of funds that are never claimed. While settlements have been known to exceed $10 billion, more than half the people entitled to payment never file a claim.
Current and prior customers and stockholders in untold thousands of companies are entitled to class action money, but nothing will be awarded without action by the subject, and legal notice of eligibility is often hidden in newspapers’ “classifieds” sections. If a person has moved physically or switched broker, they may not be notified of their eligibility.
A person can be entitled to cash, credits, shares or distributions even if they sold stock or used the relevant product a long time ago.
Houston class actions are leveled in federal court, so settlements won’t be returned by a state unclaimed property search.
The largest settlement listed at www.lawyersandsettlements.com is from Expedia, the world’s foremost online travel booking website. In a case in Washington, Expedia has been ordered to pay a settlement of $184,470,452 after charging service fees under false pretenses in millions of hotel transactions. The judgment is the biggest for consumer class action in the state’s history. Not listed by this website was another $663 million of money for settlements won by CenterPoint Energy Houston to the tune of $ 663 million - a great deal of money. This was to cover costs incurred by the company to restore service after Hurricane Ike, which hit the Houston area in 2008. CenterPoint, headquartered in Houston, serves more than five million customers. CenterPoint and its predecessors have operated for more than 130 years.
Money from a settlement can be taxed. One of the more interesting instances is if the lawsuit was against a company for stock market losses. The key factor is why the money was awarded. If stock was overcharged because of an artificially high price or financial wrongdoing, the payments is viewed as a refund, and there’s no tax consequence. If, however, the shares have already been sold, the payment should be reported as a capital gain on Schedule D. If the settlement was for punitive damages, the money is taxed as normal income. If the payment was for interest earned on the settlement, that’s interest income.
A settlement agent can be contacted for assistance.
