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AT&T announces proposed settlement of lawsuits pertaining to AT&T Wireless.

M2 EQUITYBITES-5 July 2010-AT&T announces proposed settlement of lawsuits pertaining to AT&T Wireless(C)2010 M2 COMMUNICATIONS http://www.m2.com

US communications holding company AT&T (NYSE:T) on Friday announced proposed settlements of class action lawsuits relating to certain billing practices of AT&T Wireless Services Inc, which was merged out of existence when it combined with Cingular in 2004.

The company said that the settlements do not concern the practices of Cingular Wireless or AT&T Mobility.

The class actions that are part of the proposed settlements that challenge the alleged billing practices of AT&T Wireless Services and related entities, including Santa Barbara Cellular Systems Ltd (AWS) including charges for mMode Data Service, if the subscriber did not authorise the charges or did not understand the disclosures about the charges.

It also includes charges for ENH Discount International Dial (EDID), if the subscriber did not authorise the charges or did not understand the disclosures about the charges; and charges for cellular telephone calls during a billing period other than the billing period in which the calls were made (Out-of-Cycle Billing), if the subscriber did not understand the disclosures about the charges.

In addition, it includes the Universal Connectivity Charge (UCC), if the subscriber was not aware at the time of subscribing that the UCC would be charged.

The representative plaintiffs have claimed that these practices violate the Federal Communications Act and consumer protection laws of California, Washington, and other states and territories of the US.

AT&T said that it strongly denies the representative plaintiffs' claims of any wrongdoing, but has agreed to settle to avoid the burden and cost of further litigation.

Class members who were AWS customers after 1 March 1999 and who submit approved claim forms may be eligible for the benefits of USD8.00 for mMode, USD10.00 for EDID, USD8.0 for Out of Cycle Billing or a 250 minute AT&T Phone Card and USD7.00 for UCC.

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Publication:M2 EquityBites (EQB)
Date:Jul 5, 2010
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