Angela Bates vs KB Homes -- $7.1 million settlement against real estate developer for unfair business practices
The class-action lawsuit settled for $7.1 million just a few days before it was set to go to trial in the Alameda County Superior Court. It was brought under a California law that prohibits real estate developers from requiring their customers to use their captive escrow companies and California's Unfair Competition Law. It alleged that KB Home required its California customers to pay an unauthorized and unnecessary $275 fee for “contract coordination” to a subsidiary it set up for that purpose. The settlement requires KB Home to pay back all the fees it collected, plus attorney fees. It should be enough to refund the $275 back to every class member who can be found, and also pay $50 to those class members who did not pay fee. Most class members will get their checks in the mail without further action.
Practice area(s): Class Action, Construction / Development