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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 signed up with AT&T somewhere between 08′ and 11′. I seen a commercial about $19.99 a month for Internet and the same for the phone service. My bill was never less than $47 a month. I contacted them and they told me it was an installation charge or something. I stopped paying and gave them up. They have hounded me since, I don’ t care, I was told 19.99 a month not $47. I am a disabled veteran with almost no income and can only afford so much. I hope they get burned enough they will stop the false advertisements and stop ripping people off!
I have a charge support 15.00 per month since Jan2014 that I did not ask for.I think it,s called Cramming.
When I called 866 294 3464 that they would only reimburse me for 3 month’s and I half to wait for it.
What happened to the other 6 months and that they might make me lee the service until Dec.
Im looking for help in this matter.I have never used this service and didn’t know I had it.
My bill Goes Up an Down Like A Rubber Ball!!!!!
I filed a claim but never got the check? How do I follow-up.
My mother is a long time ATT customer and in June of this year she received a credit for almost $21,000 and contacted the customer support that there was a problem with her bill. She was informed that she was part of the class action lawsuit and that she would not have to do anything so now she is getting bill showing that she is paying some company called GPSPS, INC., another long distance service that she never authorized. She currently has ALL DISTANE with ATT, so why would she add another service. Both last month and in the month of July she has had extra long distance charges which she never made, we want to know if she is entitled to the moneys owed to her for services she over paid for and if not how to resolve these issues…
Will I receive a portion of the settlement if I never received notification of the Suit against AT&T.
I filled out my information on line in 2012. I want to know when are we going to get paid. I have not received any information regarding when the settlement checks are going to be sent out. I do not want my money added as a phone credit on my phone bill. I want my money sent directly to me because that’s money that I could be using toward bills and household expenses and food. Att should pay for overcharging the customers. I do not like paying high phone bills. I am unemployed and I need all the money that I can get. In addition to paying phone bills I also pay utility bills, cell phone,internet, mortgage,auto insurance. They need to hurry this along we consumers should not have to wait anymore than we should for this money. Sincerely, Rachelle Price
WOW! You have to pay all those bills? No one else has to pay that but you! Come on people. Over half the messages being posted here are illegible. What does that tell you? Maybe you aren’t smart enough to have a phone? Why don’t we just make everything free? Grow up people you sound like a bunch of toddlers, when do I get my check, I want money too! I deserve it because I have bills to pay! Like this Rachelle Price woman, if you cant afford a telephone disconnect the dang service. If you want a telephone you have to pay for it! UNICEF may be in the phone business one day but for now you got pay! Some of you all think you are going to get thousands of dollars! LOL ignorant human beings! Some of you all act like you are the only one who has bills to pay! Telephone, cell phones and internet are not necessities if you cant afford them HAVE THEM TURNED OFF! No wonder this country is in the shape it is in. Someone posts something about a lawsuit against big bad AT&T and here come all the cockroaches to get their piece of the pie. RIDICULOUS!
i want to know are the check come out i dont want my moneyto go on no phone bill
I mailed my card back in on 10 25 2013 and still looking for my check not only that they billed me for something that I had know idear that was on their and they turned my internet off and left my phone on called and ask why they turn off internet and not phone they said that’s the way they do it
Important Alert from the Settlement Administrator:
The Garden City Group, the claims administrator for the Nwabueze v. AT&T Inc. settlement, has recently learned that individuals representing themselves to be associated with the Nwabueze v. AT&T Inc. settlement have contacted one or more class members and sought to obtain full social security numbers and bank account information. Please be advised that these individuals are not acting on behalf of the Nwabueze v. AT&T Inc. settlement. No one associated with the Nwabueze v. AT&T Inc. settlement will ever request that you provide information regarding your full social security number or personal bank account. Therefore, please be careful about releasing your full social security number and bank account numbers to others.
If you receive a call requesting such information or if you are concerned about a call you receive, please write down the phone number and contact the Garden City Group at Nwabueze v. AT&T, Inc. c/o GCG, P.O. Box 35045, Seattle, WA 98124 or by email at info@ATTthirdpartybillingsettlement.com.
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.
Where’s the money, I’ve been waiting to get paid. I wish I could pay my bill the way they keep us waiting.
Mother Johnson