What is the CSC ServiceWorks Lawsuit?
CSC ServiceWorks, Inc. (CSC) is a commercial laundry services company that provides laundry machines and services to multifamily housing properties. In 2017, a class action lawsuit was filed against CSC alleging that the company breached its contracts with landlords by deducting an unauthorized 9.75% administrative fee from laundry revenue.
The lawsuit alleges that CSC’s administrative fee was not authorized under the laundry lease agreements between the parties. CSC denies this allegation and claims that the fee was authorized.
In 2021, the parties reached a settlement agreement in the lawsuit. Under the terms of the settlement, CSC agreed to waive and release $45.5 million in unpaid deficits between the minimum base compensation CSC claims Settlement Class Members owe to CSC under their lease agreements and the gross collections received from those Settlement Class Members. CSC also agreed to waive and release $152 million of uncompensated costs from Settlement Class Members that CSC claims Settlement Class Members owe CSC stemming from CSC’s provision of laundry services to them.
The settlement was approved by the court in 2022.
FAQs
Q: Who is eligible for the settlement?
A: The settlement is open to all landlords who entered into a laundry lease agreement with CSC on or after January 1, 2010.
Q: How do I get my settlement payment?
A: Settlement Class Members will receive a notice in the mail with instructions on how to submit a claim form.
Q: How much money will I get from the settlement?
A: The amount of your settlement payment will depend on a number of factors, including the terms of your lease agreement and the amount of revenue generated by your laundry machines.
Q: What if I have questions about the settlement?
A: You can contact the settlement administrator at [phone number] or [email address].
Q: What are the deadlines for submitting a claim form?
A: The deadline to submit a claim form is [date].
Q: What if I miss the deadline to submit a claim form?
A: If you miss the deadline to submit a claim form, you will not be able to receive a settlement payment.
Conclusion
The CSC ServiceWorks lawsuit is a complex case that has been ongoing for several years. The settlement agreement reached by the parties is a significant victory for landlords, as it will provide them with millions of dollars in compensation.
If you are a landlord who is eligible for the settlement, I encourage you to review the settlement website and submit a claim form as soon as possible.
References
- Hochman v. CSC ServiceWorks, Inc., No. 1:17-cv-01190 (E.D.N.Y. filed Feb. 23, 2017): https://www.classaction.org/media/hochman-v-csc-serviceworks-inc.pdf
- Class Action Settlement Website: https://www.cscadminfeesettlement.com/
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