AT&T class action alleges business customers billed for disconnected services

AT&T class action lawsuit overview:

• Who: BHS Law LLP filed a class action lawsuit against AT&T Corp. and AT&T Services Inc.
• Why: BHS Law alleges AT&T improperly billed its business customers for telephone services that were suspended, disconnected or terminated.
• Where: The AT&T class action lawsuit was filed in California federal court.

AA new class action lawsuit alleges AT&T improperly billed its business customers for telephone services that were suspended, disconnected or terminated.

BHS Law LLP claims AT&T improperly kept payments for services it did not provide while transitioning customers away from its analog copper phone network to digital or IP-based alternatives.

“Defendants created new or modified billing accounts, altered service conditions and imposed new payment obligations without adequate notice or express, written assent while continuing to bill customers automatically,” the AT&T class action lawsuit says.

BHS Law seeks to represent a nationwide group of business customers whose AT&T business phone lines were suspended, disconnected, or terminated, but who were still billed during one or more periods when AT&T did not provide working service.

AT&T allegedly failed to provide timely notice of service cutoffs

BHS Law claims the affected lines were used only for fire-alarm signaling and life-safety compliance, meaning AT&T’s alleged actions had “foreseeable regulatory and operational consequences.”

According to the  AT&T class action lawsuit, this included lost fire-alarm monitoring, intervention by local fire authorities and emergency compliance measures.

“Defendants’ practices constitute unjust and unreasonable conduct under federal telecommunications law, breaches of contractual and equitable obligations and unfair and unlawful business practices under California law,” the AT&T class action lawsuit says.

BHS Law claims AT&T is guilty of breach of contract, breach of the implied covenant of good faith and fair dealing, money had and received, unjust enrichment and unfair competition. 

The plaintiff demands a jury trial and requests declaratory and injunctive relief and an award of restitution and disgorgement, actual damages, pre- and post-judgment interest and attorneys’ fees and costs.

In 2025, AT&T Inc. faced a class action lawsuit alleging it violated the Telephone Consumer Protection Act by sending telemarketing text messages to consumers who had attempted to opt out.

Have you been billed for disconnected services by AT&T? Let us know in the comments.

The plaintiff is represented by Brian H. Song of BHS Law Corp.

The AT&T bill class action lawsuit is BHS Law LLP v. AT&T Corp., et al., Case No. 5:25-cv-10712, in the U.S. District Court for the Northern District of California.

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