Linebarger Goggan Blair & Samson, a law firm, was charged with a class action lawsuit due to allegedly sending inappropriate collection letters to Californians. 

The Lawsuit

Individuals to whom debt collection letters were improperly sent filed a class action lawsuit against Linebarger.

The plaintiffs paid money to the Texas-based company in response to these letters. The class action lawsuit was filed in March 2017.

According to the plaintiffs, the action breached clauses of the California law. Complainants assert that Linebarger receives compensation from assisting clients in collecting debts on their behalf.

Plaintiffs state that the money collected was debts related to governmental entities. The debts include tolls, unpaid taxes, fines, and public hospital medical services or court services fees. Complainants have paid the costs due to the demand letters. Part of the payments was allegedly given to Linebarger. 

The Settlement

Linebarger does not acknowledge any of the allegations made against them. The law firm asserts that they did not commit wrongdoings. 

However, they have agreed to pay the settlement to avoid any further litigation against the company. 

The settlement aims to compensate plaintiffs amounting to $9 million. It is estimated that about 151,000 individuals will benefit from the settlement.

Settlement Terms

Aside from the compensation, Linebarger has accepted that a licensed California attorney will oversee their debt collection activities in California.

The attorney will be responsible for reviewing the letters that the company sends out for debit collection.

The settlement terms state that class members are allowed to claim up to 23.2% of the amount they have paid to the law firm.

The terms also state that the sum of all the claims Class Members may receive is capped at $9 million.

The terms state that if the total amount exceeds $9 million, individual class members’ payments may be decreased.

Class Member Eligibility

Individuals are eligible to make claims for the settlement if they meet the following criteria:

• There were debt collection letters sent to them by the law firm.
• The letter was received between September 16, 2013, and April 15, 2019.
• The individual paid the amount to the law firm.
• Linebarger has received a fee for assisting the collection of payment.

Claim Rules

Class members who would like to make claims must submit a claim form online or by mail. 

Affected class members were sent a settlement notice including a Claim ID and PIN. This information is not required when submitting the claim form.

Deadlines

Class members who would like to make a claim should submit the claim form before the deadline on March 2, 2021.

Class members who would like to file for exclusions and objections can no longer do so as the deadline has already passed. The last hearing was conducted on August 23, 2019.

Editor’s Note on Linebarger Class Action Settlement:

This article is created to update you of the latest class action settlement agreed by Linebarger for $9 Million.

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