Landmark Class Action Settlements Result In Over $275 Million Availabe For Refunds To California Taxpayers For Sales Taxes

  Landmark Class Action Settlements Result In Over $275 Million Availabe For
 Refunds To California Taxpayers For Sales Taxes Improperly Collected On Dell
                              Service Contracts.

PR Newswire

SAN FRANCISCO, Jan. 15, 2013

SAN FRANCISCO, Jan. 15, 2013 /PRNewswire/ -- Pursuant to a court-approved
notice plan, more than 4 million notices are being mailed to California
taxpayers, informing them of two class action settlements reached in a
decade-long lawsuit over the collection of sales tax on purchases of computer
hardware service contracts from Dell. Under the terms of the respective
settlements, which cover purchases made between April 8, 1999 and June 30,
2008, funding for the settlements will be provided by Dell and the California
State Board of Equalization. The settlements followed a 2006 trial court's
decision, later affirmed on appeal by the California Court of Appeals in 2008,
ruling that optional service contracts sold by Dell were not subject to
California sales or use tax, as they did not constitute tangible personal
property and were readily separable from the computer hardware with which they
were sold. A similar class action lawsuit brought on behalf of taxpayers in
the State of Washington was settled in 2006. Fredric Ellis, a Boston attorney
appointed as class counsel for the California settlement classes, stated,
"These settlements represent an important victory for California consumers and
businesses. After a long fought battle, including a trial and multiple
appeals, we are thrilled that the taxes which were wrongfully collected by
Dell will finally be returned to California taxpayers."

Under the two settlements, which are awaiting final approval by the court,
customers of Dell who, during the class period, purchased and paid tax on
service contracts covering computer hardware will be entitled to a full refund
of all such taxes that they paid. Over $275 million in refunds will be
available to be claimed. The notices mailed to customers inform them of the
amounts of refunds available to them and instructions for the timely filing of
claims. Customers wishing additional information about the settlements may
visit the settlement website,, or may call the toll-free
assistance line at 1-877-502-2008.

SOURCE Ellis & Rapacki LLP

Contact: Attorney Fredric (Rick) Ellis, Cell: +1-617-797-5379, or Office:
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