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SOUTHERN CALIFORNIA RECORD

Tuesday, November 5, 2024

Judge denies injunction for plaintiffs seeking to arbitrate Turbo Tax claims

Federal Court
Postmancole

Postman and Cole

Los Angeles Superior Court Judge Terry Green denied a move by a mass group of plaintiffs who sought to keep their claims against Intuit out of a giant $43 million settlement reached a week earlier in federal court.

A hearing in Green's court on Friday afternoon ended quickly as the judge appeared to have already made up his mind when he entered. 

The case involves the claims of Turbo Tax users who say they were steered into paying for tax preparation services instead of receiving free services.

Green denied Keller Lenkner's move for injunction for 125,000 people who wanted to arbitrate their claims in state court rather than participate in the class settlement.

At the hearing, Warren Postman of Keller Lenkner appeared for the mass arbitration claimants and Rodger Cole of Fenwick & West appeared for Intuit over a video call. 

Green said events move faster than the court's calendar, and that he could "no longer offer preliminary injunction."

“Everybody has a right to say ‘no, I won't settle the case,’ and everyone has the right to say ‘yes’.” 

Keller Lenkner had argued that the clients it represents are not similarly situated in the value of their claims with other members of the class. 

"Intuit has also made statements in state court explaining that it would not have entered into the proposed settlement here unless it included the Arbitration Claimants (with the more valuable claims), even though the settlement imposes a one size-fits all resolution for these differently-situated plaintiffs," Postman wrote to District Judge Charles Breyer, who presides over the federal court litigation at the Northern District of California. 

"When Counsel for the Arbitration Claimants sought to represent the distinct interests of their clients in the mediation leading to the proposed settlement, the parties here excluded Counsel from settlement discussions regarding their clients’ claims."

In denying Keller Lenkner's move for injunction, Green said he could not and would not interfere with Breyer's settlement order.

“I can't tell him who will and can be a part” of the case, Green said. 

“Class action is in very capable hands and doesn’t need my interference...I can and will not intervene.”

Postman said, "I understand you will leave it to Judge Breyer, and won't waste the court's time."

Cole said, "How the class members will be contacted will be determined by Judge Breyer."

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