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September 16, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Xerox faces federal lawsuit over allegedly excessive leasing fees

Xerox Corp. is the subject of a federal lawsuit that charges the Norwalk-headquartered company of demanding extreme and illegal fees on its products and services.

The 22-page complaint was filed in U.S. District Court in Rochester, New York, by Eco Farms, a Temecula, California-based company that grows and sells avocados. Eco Farms claimed it was charged higher rates than the levels stipulated in its June 2013 agreement with Xerox. The lawsuit alleged that Xerox did not clearly itemize its bills and forced customers to either pay increased fees or end the contract while paying “enormous early termination fees.”

Eco Farms also accused Xerox of refusing to replace defective equipment that its technicians could not fully repair. In its case, the company claimed that it ended its contract by paying Xerox $24,609 and moved the Xerox equipment to an off-site storage center for the vendor to pick up. But Xerox has yet to retrieve the equipment and is demanding $11,575 from Eco Farms for the cost of its machine.

The Rochester Business Journal reported that thousands of Xerox customers could be potential class members of this lawsuit, which could make the total amount of the claim more than $5 million.