Terry et al., v. Wasatch Advantage Group, LLC, et al.

The case U.S. ex rel Terry, et al. v. Wasatch Advantage Group, et al. is a certified California class action and a federal False Claims Act case challenging Wasatch’s charges to Section 8 tenants for items like washers and dryers, renter’s insurance, parking, storage space, and internet and cable services.

The U.S. District Court for the Eastern District of California certified two classes of current and former Section 8 tenants at Wasatch properties in California.  Notice to the Reimbursement Class was sent in spring of 2020.  The Injunctive Relief Class is seeking changes to Wasatch’s practices to protect the rights of Section 8 tenants.

In addition to the California class claims, the lawsuit is seeking damages and penalties on behalf of the federal government based on the Section 8 voucher payments that Wasatch accepted while falsely certifying that it was in compliance with Section 8 program rules.

GBDH and co-counsel Law Offices of Andrew Wolff, PC, Centro Legal De La Raza, and Impact Fund have been appointed Class Counsel. If you have questions about this case, please e-mail wasatchclassaction@gbdhlegal.com or call (888) 316-8870.

October 30, 2024 Case Update

Just days before trial was set to begin on July 30, 2024, the Parties reached a settlement resolving both the class claims and the False Claims Act (“FCA”) claim on behalf of the U.S. Government.  On October 25, 2024, the Court granted preliminary approval of the settlement of the class claims and approved the $7 million FCA settlement.

The class settlement includes $5 million to repay additional service fees paid by class members, plus interest, as well as additional amounts for class attorney fees and costs.  Additionally, the settlement achieves critical improvements in Wasatch’s practices that ensure that additional service fees will always be optional for Section 8 tenants, and that nonpayment of those fees will never be a basis for eviction.

Next steps in finalizing the settlement include issuing notice to class members and submitting further briefing to the Court. Because the settlement has not been finally approved, there is no money available now.

This outstanding settlement built on our successes in the case.  Here are some of the most important orders by the Court:

  • In November 2022, Chief Judge Kimberly J. Mueller of the Eastern District of California ruled that Wasatch violated the Section 8 Housing Assistance Payment Contract and California law by treating additional services charges like rent.  This ruling led to important changes for Section 8 tenants living in properties managed by Wasatch Property Management.  Read more about those changes here.
  • In November 2023, the Court approved a “cut-off date” of November 30, 2022 for the class seeking reimbursement of the fees.  This lawsuit is now seeking reimbursement only for additional service fees paid before December 1, 2022.
  • Most recently, in January 2024, the Court ruled that Wasatch could not deduct its costs from the reimbursements that Plaintiffs are seeking for the class.

Case Documents