Facts

A class action was filed against Helio LLC by Samuel Vanover on behalf of similarly situated individuals, regarding flat-rate early termination fees.

Settlement class members included all current and former Helio customers who, at any time prior to Oct. 4, 2010, were under a contract with Helio that contained the early termination fee (ETF) provision.

PLAINTIFF'S CONTENTIONS:
The class contended that the $175 flat-rate termination fees constitute unjust enrichment and was violative of the California Consumer Legal Remedies Act, California Civil Code Section 1671, and California's Unfair Competition Law.

DEFENDANT'S CONTENTIONS:
Helio denied any wrongdoing.

Result

The parties reached a settlement, under which Helio established a $950,000 fund for the payment of refunds to members of the settling class. Customers were qualified to receive a portion of the settlement amount if they were under contract with Helio at any time prior to Oct. 4, 2010 and the contract had an ETF provision, whether or not a member paid any portion of the ETF to Helio or any third party collection agency. Settlement class members were eligible to received a cash award of $10 or a refund equal to the difference between the flat-rate ETF they paid and what they would have paid had the ETF been pro-rated. In reaching the settlement, Helio made no admission of liability.