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Senate narrows scope of class actions for tax refunds, limits fees in targeted cases
Summary
The Senate adopted an amendment to SB250 that restricts contingency fees in class actions seeking tax refunds and requires claimants to exhaust administrative remedies before class inclusion; the first substitute passed 24–2 with several senators warning about reduced incentives for class representation.
The Utah Senate amended and passed first substitute Senate Bill 250 on March 1, a measure that changes how class actions for tax refunds may be handled in state courts.
Sponsor Senator Valentine described the legislation as an "anti‑pouncing" provision aimed at limiting opportunistic class actions that rely on administrative errors to generate large…
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