Viacom Settles Class Action Suit Over Property Tax Surcharges

by Glen Shapiro, LawAndTax-News.com, New York

14 August 2003

US media firm, Viacom last week agreed to refund a property tax surcharge imposed on 650,000 cable subscribers in 10 Northern California counties.

Following the preliminary approval of the $13 million settlement by the Alameda County Superior Court on Friday, it emerged that cable customers in the affected areas will receive between $5 and $15 each, depending on how many eligible subscribers apply.

The class action suit was brought against Viacom following the firm's failure to return a property tax surcharge collected from cable customers in the 10 counties between 1991 and 1996.

According to attorney, Derek Howland, who represented the plaintiffs, Viacom imposed the surcharge in order to offset higher property tax bills in the affected areas, but told customers that the company would appeal the tax bills, and return the surcharge at a later date. However, he revealed that although $35 million was collected from customers, Viacom never honoured this promise.

According to the Associated Press, which reported on the ruling, Viacom no longer owns the cable operations in question, and admitted no wrongdoing. Although the settlement amount has received preliminary approval, it will not be finalised until October 21.

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