Public Storage Lawsuit – Basic Information
Audet & Partners, LLP has initiated a class action lawsuit on behalf of customers of Public Storage in 2015. Public Storage customers that purchased self-storage insurance in California between 2010-2016 may have been charged illegally excessive premiums for self-storage insurance. Information suggests that Public Storage fraudulently failed to disclose to customers that a significant portion of the premiums collected for this insurance were being wrongfully diverted directly to Public Storage. This practice likely runs afoul of consumer laws and regulations in many states that require transparency of companies engaging in the sale of similar insurance coverage.
Despite having knowledge that self-storage insurance is generally unnecessary for renters with other types of insurance (e.g., homeowners, renters, or business insurance), Public Storage customarily advised renters that self-storage insurance is required. Additional information exists suggesting that Public Storage actively encouraged employees to promote its insurance as a solution provided by a third-party insurer when, in reality, the program operated as a hidden profit center for Public Storage.
The practice suggested above appears to have grossed the company more than $80 million in 2013.
