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A federal judge on Friday preliminarily approved a class action lawsuit settlement with AT&T Inc. over allegations it illegally billed thousands of landline customers for third-party services they didn’t order, a practice known in the industry as “cramming.”
The AT&T cramming settlement will resolve a 2009 class action lawsuit, titled Nwabueze v. AT&T Inc., that alleges AT&T purchased accounts receivables from other billers, billed its customers for third-party services, took a cut of the collected money and gave the remaining money to the original services. According to the class action lawsuit, however, AT&T had no system in place to make sure the third-party charges were legitimate. This allowed companies to piggyback onto AT&T’s bills just by using a customer’s phone number, without having to prove that the customer actually owed them money.
AT&T denies wrongdoing, despite eliminating third-party billing on January 1, 2011.
The practice of cramming has come under fire in recent years, leading the FCC in April 2012 to pass new regulations requiring telephone companies to inform customers of their right to block third-party charges from their bills. The FCC also mandates that third-party charges appear separate from the telephone company’s charges on bills.
“Most consumers don’t know when there are crammed charges on their bills,” the FCC said in a statement. “Crammers often avoid detection by charging a small amount to each consumer — as little as $1.99 per month — or describing charges in a manner that makes them appear to be for services from the phone company.”
Under the AT&T landline cramming class action settlement, AT&T customers who were billed for third-party services from 2005 to the present will be able to file claims to receive a refund. Current AT&T customers will receive the refunds as phone-bill credits, while former customers will receive checks.
Details on how to file a claim for the AT&T third-party billing class action lawsuit settlement can be found in our Open Class Action Lawsuits section.
The AT&T Landline Cramming Class Action Lawsuit Settlement case is Nwabueze v. AT&T Inc., et al., Case No. 9-cv-01529, U.S. District Court for the Northern District of California
Plaintiffs are represented by Jeffrey F. Keller of Keller Grover LLP, John G. Jacobs and Bryan G. Kolton of Jacobs Kolton Chtd. and Michael W. Sobol and Jahan C. Sagafi of Leiff Cabraser Heimann & Bernstein LLP.
UPDATE: The AT&T landline class action settlement was approved at the Final Fairness Hearing but settlement distribution was delayed by an appeal filed by a single Class Member in December 2013. That appeal was voluntarily dismissed in March 2014, allowing the Settlement Administrator to begin processing claims and payments.
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102 thoughts onAT&T Billing Class Action Settlement Preliminarily Approved
Received post card today.
Received a 3 X 5 card in the mail, and am just responding
received a card in mail. just responding.
EDITOR’S NOTE – Glyn, we are not settlement administrators and do not process claims. You must contact the settlement administrator (if there is a settlement) for any assistance filing a claim or to request a claim form.
I had a phone with at&t but now your just telling me that the reson for all the high bill that did not make any census to me and now I now what that was alout I fell beatter now that I now.but there needs to be a nuther way to tell if someone is useing or open a acct in your name think you for all your help. Thank you agine
att kept billing me for global-tel which is long distance from a prison where my son is incarcerated. This was since 2005 thru 2012. I then got charter and had to go to global tel ad pay a bill each month. When the bill was on Att it was always around $15.00 for 15 minutes. I now get 15 minutes for about $2.47 a month. Since I am on social security, what a savings this is. All parents who have someone incarcerated in Calif. should make sure they get their money back. What a rip off. Carma bites you att.
I find it interesting that, yesterday, I received a card in the mail regarding the fact that I am a member of this class action suit.
today I got my bill from ATT and my wireless rates have been raised by $4.00 per month.. Just who is winning and who is losing out here!
yes give me my money when you get it im needing it right away. harrrrrry up and settle love pay backs.
I deffently want to be a part of this lawsuit!!! My bill is never the same with AT&T. But it does go up every month and nothing changes when you call. They just ignore you. so count me IN!!!!
i ask att line line to put a restriction on my home phone i didnt want long distance nor wanted the 900 numbers or anything else on my bill. the next month i got my phone bill ot was 397 ad some cents. i called them and ask why this was on my bill because i had a restriction on my line. The answer was some how that company came thru and you will have to pay for it. and after i paid them 230.00 plus my bill they still turn my phone off because they wanted it in full, plus my other bill and i was on life line.
n April they will have more info on how to be apart of this class action