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Monday, May 6, 2024

USC removes class action over late fees to federal court

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LOS ANGELES (Legal Newsline) - The University of Southern California has transferred a class action lawsuit over late fees it charges when students don't pay for classes by the deadline it imposes.

The lawsuit says the fees aren't based on any financial harm USC suffers as a result of payment after its deadlines. Lawyers at Bursor & Fisher filed the suit in July 2020 in Los Angeles Superior Court, but USC decided on July 18, 2022, to remove it to Los Angeles federal court.

The fees start at $100 for payment within the first week after the deadline and rise to $300 for payments made within the third week or later. The suit alleged violations of laws regarding unlawful penalties and unlawful forfeitures, as well as violation of the California Unfair Competition Law.

Parts of USC's demurrer to the first complaint were granted in state court, and an amended complaint was entered April 14, 2021. A second amended complaint came less than a month later.

A June 22 motion for class certification changing the definition of the proposed class from Californians to students nationwide prompted USC to remove the case to federal court.

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