Termite company settles in suit with south Alabamians

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The deadline for a $60 million Terminix settlement in Alabama ends today.

Residents of Mobile, Baldwin and Monroe counties are eligible for the payout. They experienced annual service rate increases without effective extermination. Terminix struggled to handle the Formosan termite species. The hard-to-kill variety entered the US through the port of Mobile.

Lead attorney Dan Taliaferro said Terminix was increasing rates on an exorbitant pay schedule. 

“There were more termite problems, and as a result of not having adequate treatment to counteract that, there were far more termite claims. Consequently, Terminix increased their annual rate for termite protection and they weren’t being protected,” he said. 

The Terminix settlement fund still has about $19 million to distribute. Taliaferro also stated that about 20,000 South Alabamians are eligible. 

“We had two classes of people: the existing customers who paid these high rate increases," he said. "There were over 4,000 of them. And then, 16,000 people who had gone on to other services because the Terminix rate increase was so high.” 

South Alabamians can apply for the payout at terminixfund.com. Terminix has ended its rate increases and changed management since the suit.

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Libby Foster is a news intern for Alabama Public Radio.