Karina Basso  |  July 7, 2015

Category: Consumer News

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TracFone Straight TalkOn July 2, a proposed $40 million unlimited data class action settlement was given final approval by a California federal judge, resolving claims against TracFone Wireless Inc. that the company falsely advertised its unlimited data plan because users’ data usage was allegedly “throttled” after they used a certain amount.

In addition to the $40 million which will be distributed to qualifying Class Members, an additional $5 million will be given to pay Class Counsel’s attorney’s fees. U.S. District Judge Edward M. Chen found the proposed TracFone class action settlement to be fair to the estimated Class of about 8 million TracFone users.

At the same time that he gave his final approval this TracFone unlimited data class action settlement, Judge Chen also gave his judgment regarding an objection to the proposed settlement, which argued that $40 million was too low. The judge disagreed, finding that consumers who chose to continue to use TracFone’s data services for multiple months were not likely to win damages awards beyond payment for the first month of their data plan. Judge Chen reasoned that these consumers should have become aware of TracFone’s data plan flaws by then or that they were unaffected by the alleged data throttling.

Judge Chen considered the $15 difference between a TracFone unlimited data, voice, and text plan and the company’s comparable limited plan, and calculated that the highest possible verdict against TracFone for 8 million Class Members would be $120 million. In regards to the huge disparity between the calculated amount and the approved $40 million, Judge Chen states:

“The $40 million settlement fund recovers one-third of the theoretical verdict amount for class members — a very reasonable compromise in this court’s experience. More realistically, only a portion of the $15 premium is attributable to unlimited data, and even then because the throttling occurred only when the ceiling on data usage was reached, many users would not encounter throttling until the last days of the month. This fact suggests that assuming a full month’s damage at the full $15 premium rate may well be a generous assumption.”

In addition to the $40 million unlimited data plan class action settlement, TracFone has agreed to stop advertising their data plans as unlimited, as well as make other changes to their marketing and advertising to avoid consumer deception. This form of injunctive relief by the defendant represents “significant value” for the Class Members and consumers, according to Judge Chen.

TracFone and the plaintiffs came to an initial unlimited data plan settlement in January of this year, at which time $40 million had been agreed upon as a proper settlement amount by both parties. Once news of the proposed TracFone unlimited data class action settlement got out, plaintiff Alexander Birner objected to the settlement, stating it was too low and burdens Class Members by requiring them to ask TracFone whether or not they had been affected by the alleged data throttling.

Despite this objection, the plaintiffs of this Tracfone class action lawsuit urged the court to move forward with the proposed unlimited data class action settlement.

The Class is represented by Michael W. Sobol, Roger N. Heller and Nicole D. Sugnet of Lieff Cabraser Heimann & Bernstein LLP, Daniel M. Hattis and Kirill M. Devyatov of Hattis Law, and John A. Yanchunis and J. Andrew Meyer of Morgan & Morgan Complex Litigation Group PA.

The TracFone Unlimited Data Class Action Lawsuit is In Re: TracFone Unlimited Service Plan Litigation, Case No. 13-cv-03440, in the U.S. District Court for the Northern District of California.

UPDATE: According to the settlement administrator, the Tracfone class action settlement will become effective on Aug. 1, 2015 and checks will be mailed by Oct. 20, 2015.

UPDATE 2: Settlement checks were mailed out to Class Members starting on Mar. 22, 2016 through Mar. 29, 2016. According to the settlement administrator, Class Members must cash their refund checks no later than July 20, 2016.

UPDATE 3: On Mar. 26, 2016, Top Class Actions readers have started receiving settlement checks! If you filed a claim for the TracFone “unlimited” data class action settlement, keep an eye on your mailbox because checks are on the way!

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10 thoughts onTracFone Unlimited Data Plan Settlement Gets Final Approval

  1. Shelby says:

    It’s January 2017 and still haven’t got a check.

  2. Neil Hansen says:

    Dec 14, 2016
    I just discovered the settlement check and I have not cashed it. Can it be reissued and cashed? It is dated March 22, 2016.
    Claim #1936440

  3. Shelby says:

    I still haven’t received a check.
    It’s October 25 2016 now.

  4. Top Class Actions says:

    UPDATE 3: On Mar. 26, 2016, Top Class Actions readers have started receiving settlement checks! If you filed a claim for the TracFone “unlimited” data class action settlement, keep an eye on your mailbox because checks are on the way!

  5. Top Class Actions says:

    UPDATE 2: Settlement checks were mailed out to Class Members starting on Mar. 22, 2016 through Mar. 29, 2016. According to the settlement administrator, Class Members must cash their refund checks no later than July 20, 2016.

  6. Mason says:

    Got a check Saturday for $32.44

  7. Shelby Atterberry says:

    I have been Pissed off about Straight Talk, aka Track Phone for the last 4 years. I also e-mailed Top class Actions about it a few months ago, and I did not receive any check. Shelby Atterberry.

  8. Catherine Todd says:

    I know that I and my brother and daughter , all had track phones that were these unlimited plans that weren’t , but I can’t remember the numbers and I don”t have any paperwork. How do I put in a claim?

  9. David says:

    So I get what…$2 and a pat on the butt?

  10. maymay says:

    Oh boy!

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