Class Action Suit Filed Against Xerox for Excessive Leasing Fees



According to a class action complaint filed in the U.S. District Court in Rochester, NY, Eco Farm Sales, a former customer of Xerox, is seeking monetary damages and declaratory and injunctive relief from defendant Xerox arising from alleged assessment of excessive fees for printing services, equipment and supplies. The case also challenges Xerox’s alleged practice of charging customers unwarranted fees to end lease agreements.

Plaintiff, Eco Farms Sales, is a California-based corporation that primarily grows, packs and markets avocados.

The requested class includes all Xerox customers in the U.S. that paid a fee that was not authorized in their lease agreements since 2011 and all Xerox customers that paid a termination fee penalty in violation of their lease agreements since 2011. The suit makes claims against Xerox for breach of contract, unlawful penalties for termination, and unjust enrichment.

The plaintiff brings this action on behalf of itself and all others similarly situated. The classes are preliminarily defined as follows:

  • All Xerox customers in the U.S. that paid a fee that was not authorized in their lease agreement in the six-year period prior to the filing of the suit
  • All Xerox customers in the U.S. that paid a termination fee or penalty in violation of their lease agreement or the applicable New York law in the six-year period prior to the filing of the suit.

The plaintiff is making the following allegations:

  • Xerox induces customers to enter loan term contracts by assuring pricing and functionality that go undelivered.
  • Xerox raises fees without justification
  • Xerox charges unreasonable fees to terminate agreements.
  • Xerox’s practices have harmed plaintiff and the classes.

According to the filing, the plaintiff’s claims for relief are based on three counts encompassing: Breach of contract including breach of the covenant of good faith and fair dealing; unlawful penalties for termination on behalf of the termination class and, “unjust enrichment” on behalf of the overcharge and termination classes.

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