SAN DIEGO (CNS) - The city of San Diego will receive more than $1.18 million in a settlement resolving a lawsuit that alleged a company overcharged the city for portable shower trailers intended for the homeless during the height of the COVID-19 pandemic, officials announced Tuesday.
The lawsuit filed last year against United Site Services of California alleged the company more than doubled its usual price for shower trailers the city received in March 2020 and that it continued to overcharge for more than a year.
At the time, a pandemic-related executive order from Gov. Gavin Newsom prohibited price increases of more than 10%.
Under the settlement agreement, United Site Services will pay $942,404 in restitution and $243,063 in penalties and costs.
According to the San Diego City Attorney's Office, the settlement figures were calculated through "a comprehensive audit of invoices to pinpoint the exact amount overcharged." Officials said city staff were aware the shower trailer prices were inflated but "the city had no other options" amid high demand.
"The city, desperate to meet the needs of its homeless population, paid the price," the City Attorney's Office said.
