Mims settles with gas company

Ashley Stinnett Jul. 31, 2009, 1:52pm

RICHMOND, Va. (Legal Newsline)- Virginia Attorney General Bill Mims has reached a settlement with Lynchburg-based Timberlake Citgo over allegations the company violated the Virginia Post-Disaster Anti-Price Gouging Act.

The complaint alleged Timberlake raised gas prices in advance to Hurricane Ike's landfall in September 2008.

In some cases, the gas station raised prices by as much as 55 percent above the normal cost of regular fuel, he said.

Under the terms of the settlement, Timberlake must stop all practices that violate state law, set aside $200 for consumer restitution and post signs informing customers they may be eligible for refunds on prior purchases.

The settlement also mandates the gas station pay $1500 to the state for legal fees and penalties, as well as donate $500 to the American Red Cross Disaster Relief Fund.

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