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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
I constantly was on the phone with ATT about my bill being so expensive. They lied and told me something else. I have been with att all my life trusted this company. I want back everything they taken from me. I trusted ATT. Shame on this company.
To whom it may concern:
I called AT&T, late in February 2014, and I told them that I sent a billing form, late last year, 2013. I saw on that form, before I sent it, that I would be receiving at check in late January 2014. I didn’t receive it. So I called late in January, AT&T, and I was told that they had to wait for the Court to approve of sending the checks. I as I stated called late in February, and I was told that the Court approved of sending out the checks, and that I should go on-line to see when the checks would be sent out. I don’t see on-line when the checks will come.
Very truly yours,
Angela D. Wilson
Yes, I received the card in the mail and I send in the claim form , now waiting for the check.
I would like to know when calling in to ATT they never said anything in regards to any third party billing. I would like to have all of my money back.
I’m. Just wondering when the overcharged people will begin receiving monies due to us?
When will we get our money
I’ve been billed with no accuracy with two accounts for the past few years and my bill keeps going up on both accounts: Phone/internet U-Verse that i’m have been close to canceling my service as a full-time student. I’ve made several complaints about my bill not being combined into one. I, don’t know exact how much i may been taken for granyed until hearing so many people in my community upset with the billing department and extra charges. We have enough scams going on with identity thefts???????????
Received billing summary of third party charges and credits on your AT&T landline telephone number (BTN): 7402827547525. The net charges to my account were from American Select/USBI-Clearinghouse in a total amount of $15.19. I’m questioning lately from Clearinghouse with non-stop e-mail of you’ve won the lottery, like spam mail??? Thank you
Hello,
I have already mail in my claim form,
How long would I have to wait till I receive a refund check…?
Also, will intrest. or, late fee’s be included in check…?
Thank you
I am having problems with there third party billing although my billing was the U-verse TV and internet, I received a bad bill and I almost paid it but I knew that my bill was not what they requested me to pay I stopped payment, and requested a bill summary to show me how much I needed to paid, and cancel my service because we could not come to any understanding of how much I really owned AT&T. I had AT&T U-verse and internet for several years;in 2009 I started experiencing problems with the TV and internet this cause me to change my service plan AT&T began to bill me for service that I did not have, my plan was $56 it became double so I cancel my service and returned my equipment in about a 3 month period my bill was $800 plus, I call them repeatedly attempting to correct my bill with know success. There was a Class Action lawsuit was filled that I was apart of . I notice that when I went to get a cell phone from AT&T I still had that large bill on there files. This bill in accordance with the Class Action lawsuit should not be on there records, I had paid my last bill and returned there equipment, so why will there still be a bill. My problems with that service was when I watch a channel for several hours, the channel will freeze and then go black and the same with the internet.
been with att&t since 1988. I know I was over charged. Received the card in the mail today, and at&t says they are running behind to send me my information, it will be way past the deadline? What should I do?