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Civil Plaintiff

LA Settles ‘Serious Abuse’ of Discovery for $2.5M

LOS ANGELES — The city of Los Angeles was ordered by a judge Tuesday to pay $2.5 million in sanctions stemming from protracted litigation over the botched rollout of a Department of Water and Power billing system in 2013.

The new system, which led to some customers being wildly overbilled while others weren’t charged at all, sparked years of litigation, a multimillion-dollar class-action settlement and an FBI probe that included searches of the DWP and the City Attorney’s Office.

Following the settlement of the class-action ratepayer lawsuit, the city of Los Angeles sued consulting firm PricewaterhouseCoopers, essentially blaming the company for the failed rollout of the billing system and looking to foist financial responsibility on the firm. The class-action settlement was generally valued at $67 million, but a DWP document obtained by the Los Angeles Times indicated that associated costs would raise the price of the resolution to about $300 million.

Read the source article at Los Angeles Daily News

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