MULTNOMAH COUNTY OREGON REACHES $3.5 MILLION SETTLEMENT IN CLASS ACTION OVER TAX FORECLOSURE SURPLUSES - CLAIMS PROCESS ESTABLISHED FOR FORMER OWNERS

PHILADELPHIA, Sept. 2, 2025 /PRNewswire/ -- The following statement is being issued by Kroll Settlement Administration regarding Lynch et al. v. Multnomah County et al. ("Lynch case"), Case No. 3:2023cv01502.

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Oregon's largest County has reached a settlement in a class action lawsuit on behalf of former owners whose properties were sold at tax sales. Many former owners, heirs, and valid lienholders are now eligible to claim surplus funds generated after their properties were sold at tax foreclosure auctions. The lawsuit, Lynch, et al. v. Multnomah County, et al. pending in federal court in Portland, Oregon, alleges that Oregon Counties' practice of retaining surplus proceeds obtained in a tax sale above the amount of the taxes owed was a "taking" of the owners' property in violation of the U.S. and Oregon Constitutions.

Under the settlement agreement between Multnomah and the Plaintiff Class, the county is paying all surplus proceeds it has received since 2017, plus interest, into a settlement fund to pay valid claims of all owners, heirs of deceased owners and valid lienholder interests.  The Class Members will be able to complete claim forms online, or by mail.  The total amount of the Settlement Fund is $3,515,759.25.

The lawsuit was filed in October, 2023, after the U.S. Supreme Court ruled 9-0 in Tyler v. Hennepin County, a case involving a Minnesota County, that it is an unconstitutional "taking" for a municipality to retain any proceeds of the tax sale in excess of the taxes, fines or costs owed.  The Plaintiffs in the Lynch case seek to recover tax surplus from all Oregon Counties.  Only Multnomah County has entered into a settlement.

The federal district court has authorized notice to be provided to the class members and will hold a hearing on November 10, 2025 to determine if the settlement should receive final approval.  The information in the court approved notice to the Class Members including all deadlines is attached.

The Plaintiff Class is represented by the law firms of Fink Bressack in Bloomfield Hills, Michigan; Kohn, Swift & Graf, P.C. in Philadelphia, Pennsylvania; Preti, Flaherty, Beliveau & Pachios, Chartered, LLP in Portland, Maine and Sugerman Dahab in Portland, Oregon.

Kroll Settlement Administration has been appointed to administer the settlement claims process.

This is only a summary. If you want the Claim Form, more information about your rights under the Settlement, or a more complete description of the litigation and the Settlement,  or if you have questions or need to update your address, visit www.MultnomahTaxForeclosureSettlement.com, call (833) 890-3212 or write to Lynch v. Multnomah County c/o Kroll Settlement Administration LLC, P.O. Box 225391, New York, NY 10150-5391.

SOURCE Kroll Settlement Administration