Judge Pares Class In Home Warranty Kickback Suit

Law360, New York (August 25, 2011, 1:58 PM EDT) -- A California federal judge on Wednesday trimmed down a putative class action alleging American Home Shield Corp. offered kickbacks to brokers whose clients purchased home warranties, limiting the suit to California plaintiffs who had opted out of a previously settled nationwide suit.

Plaintiff Richard Kohl sued AHS in March, saying that the company paid kickbacks to real estate agents who convinced home buyers to purchase an AHS home warranty, covering replacement and repair of electrical, plumbing, home heating equipment and other major home appliances. Those kickbacks,...
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