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: Legal Pad | LASettlement in kickbacks lawsuit costs defendants over $15M
By Richard Binder
A total of $5.5 million in refunds are in the mail to more than 50,000 Californians who allegedly overpaid for natural hazard disclosure reports because the real estate brokerages that listed their homes were taking kickbacks from the company producing the reports.
The lawsuit alleged that from 1996 to 2006, Property I.D. Corp. formed sham "affiliated businesses" with real estate brokerages in order to share profits from the sale of natural hazard disclosure reports priced at $99 to $114.
After deducting $50 per report to cover expenses, Property I.D. allegedly split the remaining $50 profit with referring brokers, including Coldwell Banker, Prudential California Realty, RE/MAX, Century 21 and ERA Real Estate.
Property I.D. and the real estate brokerages it partnered with shut the affiliated businesses down and denied wrongdoing.
The lawyers who filed the case ended up taking home nearly twice that much: $9.47 million in attorneys' fees plus $363,000 in expenses, or $9.83 million in total.
Click here for the full story.
Full post as published by Legal Pad | LA on July 15, 2009 (boomark / email).
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