Thursday, July 1, 2010

AT&T Proposes Settlement in Wireless Billing Practices Lawsuit

AT&T 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 Settlements do not concern the practices of Cingular Wireless or AT&T Mobility. The class actions that are part of the proposed settlements challenge the following alleged billing practices of AT&T Wireless Services, Inc. and related entities, including Santa Barbara Cellular Systems: charges for mMode Data Service, if the subscriber did not authorize the charges or did not understand the disclosures about the charges; charges for ENH Discount International Dial ("EDID"); charges for cellular telephone calls during a billing period other than the billing period in which the calls were made ("Out-of-Cycle Billing"); and 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 claim that these practices violate the Federal Communications Act and consumer protection laws of California, Washington, and other states and territories of the United States. AT&T said it strongly denies the representative plaintiffs' claims of any wrongdoing, but has agreed to settle to avoid the burden and cost of further litigation.


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