City of Raleigh Settlement: $26.2M+ Deal Ends Lawsuit Over Capital Facilities Fees

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Raleigh, North Carolina has agreed to a more than $26.2 million class action settlement to resolve a lawsuit that alleged the city exceeded its lawful authority in its collection of water and sewer capital facilities fees.

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The $26,235,749.27 City of Raleigh class action settlement received preliminary approval from the court on September 24, 2026. Eligible for the settlement are all individuals, corporations or other entities who, at any point from January 12, 2016 through June 30, 2018, paid water or sewer capital facilities fees to the City of Raleigh pursuant to the schedule of fees and code of ordinances adopted by the city.

The court-authorized City of Raleigh class action settlement website can be found at RaleighCFFSettlement.com.

Settlement class members do not need to file a claim form to receive a pro rata (proportional) cash payment.

Each class member’s payout will depend on the total amount of capital facilities fees they paid to the City of Raleigh, plus applicable interest. Payouts are anticipated to equal approximately 105 percent of the principal amount each class member paid to the city during the relevant time period.

Class members who wish to update their contact information can submit a request on this page or submit a written request to the settlement administrator that includes the notice ID found on their copy of the settlement notice.

The court will determine whether to grant final approval to the City of Raleigh class action settlement following a hearing on December 14, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The City of Raleigh class action lawsuit alleged that the city’s collection of water and sewer capital facilities fees from January 12, 2016 through June 30, 2018 exceeded its lawful authority under North Carolina law and the city’s charter.

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