City News Service (Los Angeles, CA)

LOS ANGELES, CA — For the second time, a proposed settlement of a class action lawsuit against an insurance company for tens of millions of dollars in alleged overcharges was rejected a judge, a consumer group announced today.

Los Angeles Superior Court Judge Victoria Chaney turned down the proposed deal on Tuesday in part because it would have allowed Mercury Insurance to offer $45 coupons requiring policyholders to buy more insurance from the company instead of refunding the alleged $76 million in overcharges, according to the Foundation for Taxpayer and Consumer Rights.

Mercury officials could not be immediately reached for comment.

The foundation submitted a brief opposing the proposed settlement as unfair, inadequate and unreasonable. It was the second coupon-based settlement agreement between the parties to be opposed by the foundation and rejected by the court.