AT&T proposes settlement for AT&T Wireless-related lawsuits

It's been six years since Cingular Wireless purchased AT&T Wireless for $41 billion, and finally there appears to be a resolution to some lingering class action lawsuits involving certain AT&T Wireless billing practices. Today, AT&T (NYSE:T) announced that while it denies the plaintiffs' claims of any wrongdoing, it has agreed to settle the lawsuits to avoid further litigation costs. Specifically, the plaintiffs in the class action lawsuits claim that AT&T Wireless did the following:

  • Charged for mMode data service even if the subscriber did not authorize the charges or understand the charges;
  • Charged for ENH Discount International Dial even if the subscriber did not authorize the charges or understand the charges;
  • Charged for cellular telephone calls during a billing period other than the billing period in which the calls were made; and
  • Charged for the Universal Connectivity Charge despite the fact the subscriber was not aware that these fees would be charged.

AT&T Wireless customers after March 1, 1999 and who submit the appropriate forms may be eligible for the following benefits:

  • $8 for mMode data service;
  • $10 for ENH Discount International Dial;
  • $8 or a 250 minute AT&T phone card for out of cycle billing; and
  • $7 for Universal Connectivity Charge.

Qualifying class members must mail or submit a claim form by Feb. 13, 2011. A hearing will be held Nov. 15 to consider the fairness of the proposed settlement.

Earlier this year, AT&T Mobility agreed to settle a class-action suit that alleged its older, flat-rate early termination fees were illegal. The company settled that suit for $18 million.

For more:
- see this release

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