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- Read the order here.
- For more on Crain v. Accredited Surety & Casualty, click here.
SAN FRANCISCO, CA – Two Defendants, Lexon Insurance Company (“Lexon”) and Danielson National Insurance Company (“DNIC”) agreed to settle a class action lawsuit that claims there was a price-fixing conspiracy that made bail bond prices higher in California. The lawsuit alleges that 20 “sureties” (or the companies that back the bonds sold by retail bail bond agents) decided to charge a standard price of 10% of the bail bond amount and worked together to prevent bail agents from charging less than that amount. The lawsuit alleges that customers paid more for their bail bonds than they should have, and customers were misled to believe they could not negotiate or ask for lower bail bond prices. However, in California, the law says bail bond agents can offer their customers a lower price.
Generally, individuals are included in the proposed settlements if they paid for part or all of a commercial bail bond premium in connection with a California state court criminal proceeding between February 24, 2004 and April 25, 2024.
Lexon and DNIC agreed to pay $1 million and $2 million, respectively. In the future, the combined settlement fund will be distributed to Settlement Class Members and used to pay attorney’s fees and costs, service awards, and notice and administration costs. Lexon and DNIC will also agree moving forward: (1) not to coordinate with competitors about bail bond prices in California, including premium rates; (2) to require its bail agents in California to tell potential customers that by law they are allowed to negotiate bail bond prices, and specifically: “A bail agent may choose to negotiate a lower fee by rebating, as allowed by Proposition 103.”; and (3) to require this information be included in a way that is prominent and visible wherever Lexon’s or DNIC’s bail bond agents represent or say that they must charge filed rates. The proposed settlements would resolve the claims against Lexon and DNIC, but the lawsuit will continue against the remaining 18 non-settling Defendants.
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