A $1.7 million Los Angeles impound class action settlement is set to resolve claims that the city wrongfully seized and impounded vehicles.

The settlement will benefit individuals who had their vehicle towed and impounded by Los Angeles between Jan. 11, 2014 and Feb. 15, 2017 and had to pay a fee to release their vehicle.

According to the plaintiff, the City of Los Angeles operated a scheme which resulted in the seizure and impounding of vehicles. The vehicles were allegedly impounded without Fourth Amendment justification or a warrant.

The impounding of vehicle was allegedly justified with California’s “bandit taxi” law. This allows city officials to seize and impound vehicles without a warrant if the car is suspected of being a bandit taxi, or a vehicle that takes money for rides despite lacking proper registration.

The plaintiffs claimed that, once their car was impounded, they were barred from releasing it from impound. Instead, the vehicle allegedly stayed in the tow yard for a significant amount of time and racked up hefty fees. As a result of the alleged Los Angeles impound scheme, consumers say they were forced to pay upwards of $3,000 to reclaim their vehicles from the city.







The City of Los Angeles has not admitted any wrongdoing but has agreed to resolve the claims against them with a $1.7 million settlement. In addition, the city has reportedly stopped their impound policy although the bandit taxi law will still be enforced.

Under the settlement, Class Members will receive a proportional share of the settlement fund after costs and fees are deducted. Each Class Members’ payment will vary depending on the amount they paid to release their car from impound. Class Members reportedly paid between $164.85 and $3,775.20 in order to free their vehicles.

No claim form is required for Class Members to seek benefits from the Los Angeles impound class action settlement. The deadline for exclusion and objection is March 17, 2020. The final approval hearing for the settlement is scheduled for May 21, 2020.