$3.86M Pegasus Residential Virginia Fee Settlement, Did You Pay Pest, Community, or Lease Admin Fees? You May Get Automatic Cash

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against official settlement documents, the settlement website at LandlordSettlement.com, and court records from the Eastern District of Virginia on May 15, 2026. Last Updated: May 15, 2026

Pegasus Residential Settlement is a Virginia consumer class action where eligible tenants automatically receive a cash payment — no claim form required — from a $3,862,000 settlement fund resolving allegations that Pegasus Residential charged unlawful pest fees, Community Fees, and Lease Administration Fees in violation of the Virginia Consumer Protection Act and the Virginia Residential Landlord Tenant Act. The settlement is pending final approval before Judge Robert E. Payne in the U.S. District Court for the Eastern District of Virginia, Richmond Division.

If you rented from a Pegasus-managed property in Virginia between June 23, 2023 and January 29, 2026, your payment is coming automatically — but you need to act before July 13, 2026 if you want to preserve your right to sue independently.

Pegasus Residential Settlement — Quick Facts

Field	Detail
Settlement Amount	$3,862,000 total ($2,650,000 from Pegasus + $1,212,000 from participating landlords)
Claim Deadline	No claim form required — payment is automatic for class members who do not opt out
Who Qualifies	Tenants who signed a lease at any Pegasus-managed Virginia property and paid or were obligated to pay disputed fees between June 23, 2023 and January 29, 2026
Payout Per Person	Individual amount listed on your mailed notice — varies by tenant
Proof Required	No — payment is automatic
Settlement Status	Preliminarily approved — final approval hearing August 24, 2026
Administrator	American Legal
Official Website	LandlordSettlement.com
Last Updated	May 15, 2026

Current Status of the Pegasus Residential Settlement

• The settlement received preliminary approval from Judge Robert E. Payne. Notices were mailed to class members on May 14, 2026.
• No claim form is required. If you do nothing, you will automatically receive your cash payment once the settlement is final — as long as you do not opt out.
• The opt-out and objection deadline is July 13, 2026 — 60 days from the date notices were mailed. Miss this date and you give up your right to sue Pegasus independently.
• The final approval hearing is August 24, 2026 at 10:00 a.m. before Judge Robert E. Payne at the U.S. District Court for the Eastern District of Virginia in Richmond.
• Payments will be distributed after final approval and resolution of any appeals.

What Is the Pegasus Residential Lawsuit About? Valencia Rios v. Belvedere NRDE, LLC, No. 3:25-cv-00474-REP-MRC

Pegasus Residential, LLC is a property management company that operates apartment complexes across Virginia. The lawsuit alleges that Pegasus — along with affiliated landlord entities Belvedere NRDE, LLC and Glenmoor Oaks NRDE, LLC — charged tenants fees that violate two of Virginia’s core consumer protection laws.

The lawsuit claims that Pegasus violated the Virginia Consumer Protection Act and the Virginia Residential Landlord Tenant Act through the assessment and collection of pest fees, a “Community Fee,” and a “Lease Administration Fee,” collectively referred to as the “Disputed Fees.”

The core argument is straightforward: the lawsuit alleges that monthly pest fees and community fees are unlawful attempts to shift landlord obligations to tenants, in violation of the VRLTA and the Virginia Consumer Protection Act. Under Virginia law, landlords are legally responsible for maintaining habitable conditions — including pest control — and cannot pass those statutory duties onto tenants as separate line-item fees.

This case could set precedent for whether bundling landlord obligations into fees is inherently deceptive under the VCPA and unlawful under the VRLTA, and a ruling in favor of plaintiffs could lead to a wave of similar class actions across Virginia and other states. The settlement resolves those claims without a court ruling, and Pegasus denies all wrongdoing.

Related article: $7.5M Thompson Coburn Data Breach Settlement, Were Your Medical Records Exposed? Claim Up to $5,000 or $150 Cash by July 23, 2026

This case is part of a broader national pattern of tenants pushing back against hidden and add-on fees. Virginia renters paying these charges should also be aware of the Greystar class action lawsuit, which produced $198M in settlements over similar landlord fee and rent collusion allegations.

Are You Part of the Pegasus Residential Settlement?

The court defines the class broadly. Here is how to know if you are included — and what subclass you belong to.

You are a Pegasus Settlement Class Member if you:

• Signed a lease at any apartment complex in Virginia managed by Pegasus Residential, LLC
• Paid or were obligated to pay any of the Disputed Fees (pest fee, Community Fee, or Lease Administration Fee) at any point between June 23, 2023 and January 29, 2026
• Received a mailed notice from the settlement administrator identifying you as a class member

You are also in the Participating Landlords Settlement Subclass — and entitled to an additional payment from your landlord’s contribution to the fund — if your property is one of these ten locations:

Innslake Place, Glenmoor Oaks, The Belvedere, The Point at Beaufont, The Point at Beaufont I, The Point at Beaufont II, Hickory Creek, River Forest, Spring Water, or Copper Mill.

You do NOT qualify if you:

• Are a current officer, director, or employee of Pegasus Residential or the named defendant entities
• Are the assigned judge or a member of the judge’s family or staff

Critical note if you are NOT in the Participating Landlords Subclass: The settlement does not release any claims you may have against your landlord for money damages. You can reach out to Class Counsel or your own lawyer for more information about possible claims you may have. There is a two-year statute of limitations that may affect your ability to assert claims if you do not act. Call Class Counsel at (804) 415-8848 to understand what rights you still have against your individual landlord.

If you are unsure whether you are a class member, email the administrator at the address listed on LandlordSettlement.com or mail a letter to: Rios v Belvedere, c/o Settlement Administrator, PO Box 23648, Jacksonville, FL 32241.

Tenants dealing with landlord fee disputes across the country have seen results in cases like the RealPage rent pricing lawsuit — a reminder that tenant class action litigation is actively reshaping what property managers can legally charge.

How Much Will Pegasus Residential Tenants Receive?

Your individual payment amount is printed on the notice mailed to you on May 14, 2026. The structure of the fund breaks down like this:

All class members share in the main fund of $2,650,000 contributed by Pegasus and the defendant entities.

Participating Landlords Subclass members receive an additional payment from a separate $1,212,000 contribution made by their individual landlords, on top of the main fund payment.

From the total $3,862,000 fund, Class Counsel will request attorneys’ fees of one-third of the total fund — approximately $1,287,000 — plus litigation expenses. Each of the three named plaintiffs (Maria Camila Valencia Rios, Aquarius Filali, and Nadji Filali) may receive a service award of up to $15,000 each. All of these payments come from the settlement fund before the remaining money is distributed to class members.

Any leftover funds that cannot be practically distributed to individual class members will go to the National Association of Consumer Advocates. No class member pays anything out of pocket.

What to Do Right Now If You Were a Pegasus Tenant

This settlement works differently from most class actions. You do not need to file a claim form. Your payment comes automatically. But there are still steps you should take right now:

Step 1 — Read your notice carefully. Your mailed notice from American Legal shows your individual estimated payment amount. Keep it. If you did not receive a notice but believe you qualify, contact the administrator immediately to update your address on LandlordSettlement.com/page/update-address.

Step 2 — Decide whether to stay in or opt out. If you do nothing, you get paid automatically and give up your right to sue Pegasus for the disputed fees under the VCPA or VRLTA. If you believe your individual damages are significantly higher than what the settlement offers, consider opting out before July 13, 2026 and consulting a consumer rights lawyer or class action lawsuit attorney about pursuing your own claim.

Step 3 — Update your mailing address if you have moved. Payment goes to the address on file. Log in using your Notice ID and PIN at LandlordSettlement.com/page/update-address, or email the administrator with your old and new address. Put “Change of Address” in the subject line and include your Notice ID.

Step 4 — If you want to object, act before July 13, 2026. File your written objection with the Clerk of Court and serve copies on both plaintiffs’ and defendants’ counsel. The requirements are detailed in the Preliminary Approval Order available on LandlordSettlement.com. You cannot opt out and object — pick one.

Step 5 — If you are NOT in the Participating Landlords Subclass and believe your landlord owes you money damages, contact Class Counsel at (804) 415-8848 or 703-424-7570 before the two-year statute of limitations on your claims runs out. This settlement does not release those claims for you.

Pegasus Residential Settlement Timeline

Milestone	Date
Class Period Begins	June 23, 2023
Class Period Ends	January 29, 2026
Lawsuit Filed	2025 (Case No. 3:25-cv-00474)
Preliminary Approval Granted	TBD — order date not listed in public documents
Class Notices Mailed	May 14, 2026
Opt-Out Deadline	July 13, 2026 (postmarked)
Objection Deadline	July 13, 2026 (postmarked)
Final Approval Hearing	August 24, 2026 at 10:00 a.m. — U.S. District Court, Richmond, VA
Expected Payment Date	TBD — after final approval and resolution of any appeals

Frequently Asked Questions — Pegasus Residential Settlement

Is there a lawsuit against Pegasus Residential over tenant fees?

Yes. The proposed class action lawsuit Valencia Rios v. Belvedere NRDE, LLC, No. 3:25-cv-00474, claims that Pegasus Residential, Belvedere NRDE, LLC, and Glenmoor Oaks NRDE, LLC violated the Virginia Consumer Protection Act and Virginia Residential Landlord Tenant Act through the assessment and collection of pest fees, a Community Fee, and a Lease Administration Fee. A settlement has been proposed for $3,862,000.

Do I need to do anything to get paid from this settlement?

No. You are not required to take any action to receive the automatic benefits of the proposed settlement. If you do not opt out before July 13, 2026, and the court grants final approval, your payment is sent automatically to the address on file with the settlement administrator.

When will I receive my payment?

No specific payment date is set yet. Payments are distributed after the court grants final approval at the August 24, 2026 hearing and after any appeals are resolved. Settlement payments in federal class actions like this one typically take several months after final approval. Check LandlordSettlement.com for updates after the hearing date.

Will this settlement payment affect my taxes?

Settlement payments can have tax implications depending on how the compensation is categorized. Because this settlement involves reimbursement for consumer protection violations — fees you paid that may not have been lawfully charged — the tax treatment may differ from other income. Consult a tax professional with questions specific to your situation. AllAboutLawyer.com does not provide tax advice.

How will I know if the Pegasus settlement is approved?

The final approval hearing is August 24, 2026 at 10:00 a.m. before Judge Robert E. Payne in Richmond, Virginia. You do not need to attend. Check LandlordSettlement.com after that date to confirm the outcome. If the court approves, distribution begins after any appeal period resolves.

What if I want to opt out of the Pegasus settlement?

Mail a written Request for Exclusion to: Rios v Belvedere, c/o Settlement Administrator, PO Box 23648, Jacksonville, FL 32241, postmarked no later than July 13, 2026. Your request must include your name, address, phone number, and a statement that you do not want to be part of the settlement class. If you timely submit a valid Request for Exclusion, you will preserve your ability to independently pursue any individual, non-class, non-representative claims you claim to have against the Defendants.

I lived at a Pegasus property but am not in the Participating Landlords Subclass — do I still get paid?

Yes. All class members receive a payment from the main $2,650,000 fund regardless of which property they lived at. Only tenants at the ten named Participating Landlord properties receive the additional payment from the $1,212,000 landlord contribution. And importantly, if you are not in the Participating Landlords Subclass, your settlement does not release your money damage claims against your individual landlord. Contact Class Counsel at (804) 415-8848 to learn more about those rights.

Sources & References

• Official Settlement Website: LandlordSettlement.com
• Court Docket: Valencia Rios v. Belvedere NRDE, LLC, Case No. 3:25-cv-00474-REP-MRC, U.S. District Court for the Eastern District of Virginia, Richmond Division
• Settlement Agreement & Key Court Documents: LandlordSettlement.com/page/docs
• Key Dates: LandlordSettlement.com/page/dates

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.