May 22 (Bloomberg) -- DirecTV Group Inc., the largest U.S. satellite-TV provider, was sued by a New Jersey consumer who claims its early cancellation fees are “unlawfully high and inadequately disclosed.”

The complaint claims DirecTV began on March 1, 2006, to lease equipment to consumers, and charged up to $470 for discontinuing service or failing to return equipment, according to the complaint in federal court in Newark, New Jersey.

“DirecTV uses this fee to coerce its subscribers into maintaining DirecTV service, even if the service is poor, or cannot be utilized by the customer,” according to the May 15 complaint by consumer Lloyd Cadigan, which seeks class-action, or group status.

El Segundo, California-based DirecTV said May 4 it would merge with Englewood, Colorado-based Liberty Entertainment, which would be split from billionaire John C. Malone’s Liberty Media Corp. Liberty Media Corp. owns 54 percent of DirecTV, according to Bloomberg data, and Malone is chairman of DirecTV.

A spokesman for DirecTV, Darris Gringeri, did not immediately return a call seeking comment.

The complaint seeks to represent New Jersey customers who were charged an early cancellation fee since March 1, 2006. It alleges that DirecTV violated the Federal Consumer Lease Act, the Federal Communications Act, and the New Jersey Consumer Fraud Act. It seeks reimbursement of all fees.

DirecTV, with $19.6 billion in sales last year, rose 2 cents to $23.76 at 10:23 a.m. on the Nasdaq. The stock has risen 3.6 percent this year.

The case is Lloyd Cadigan v. DirecTV Inc., 09-cv-2333, U.S. District Court, District of New Jersey (Trenton).

To contact the reporter on this story: David Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net.

Last Updated: May 22, 2009 11:09 EDT