CPA Global overcharged clients US$11.7m, say plaintiffs in US Class Action


In an earlier article, I discussed the US Class Action and overcharging allegations against the largest provider of patent annuity payment services, CPA Global. Here, I provide an update on the case.

In documents filed with the Eastern District of Virginia on 22 September in support of an “unopposed motion for final approval of settlement and class certification”, Geoffrey Neri, lead Counsel for the plaintiffs, Run Them Sweet LLC, refers to his firm’s analysis of invoices from which “we concluded that CPA Global had received roughly $11.7 million in alleged overcharges, assuming complete success on our theories of liability and damages at class certification and trial.”

Mr Neri explains that to arrive at the figure of US$11.7m, his firm determined there were 2,917 CPA Global clients that fell within the class definition. Working from the invoices for those 2,917 clients they deducted the official fees payable; the actual agent fees paid by CPA Global; and the per renewal ‘Administration Charge’ provided for in each contract, to arrive at the total of US$11.7m.   

Based on the US$11.7m figure, the US$5.6m to be paid by CPA Global to settle is a little under half of the alleged overcharges. After deductions, if they are as much as they could be, the class will end up with about 30% of the US$11.7m. This is of course better than nothing and none of the class will have risked a penny (or a cent) to recover what they will receive. Some, however, may well feel that they should not have been subjected to the alleged overcharges in the first place.