AT&T class action over reward cards consolidated, dismissed

Update: 

• Judge David C. Godbey consolidated claims against AT&T in February 2022, less than a month after plaintiff Jill Witte filed a lawsuit.  
• The judge consolidated Witte’s lawsuit with that of Steven Palumbo; Palumbo filed his complaint in August 2021 and later amended it in March 2022. AT&T and co-defendant DirecTV responded to the complaint later that same month. 
• AT&T and DirecTV then filed a motion to compel arbitration for the consolidated class action lawsuit in April 2022.
• Judge Godbey dismissed the case without prejudice in March 2023. 
• The suit alleged AT&T misled new customers by allegedly promising them reward cards the company either never sent or sent near or after their expiry date. 

AT&T reward card class action lawsuit overview: 

• Who: Jill Witte filed a class action lawsuit against AT&T Services, Inc. and DirecTV LLC. 
• Why: Witte claims AT&T offers new customers reward cards for signing up that it either never mails or sends near or after they are set to expire.
• Where: The class action lawsuit was filed in Texas federal court.

(Feb. 7, 2022)

AT&T misleads new customers by promising them reward cards that it either never mails or sends near or after they are set to expire, a new class action lawsuit alleges.

Plaintiff Jill Witte claims AT&T uses the promise of a reward card, often worth between $100 to $400 and that expires after 150 days, to tempt new customers into signing up. 

Witte claims AT&T either never sends the cards or “delays” doing so so that it won’t have to honor them. 

“Rather than sending the card to new customers immediately after they contract and pay for their new AT&T services, AT&T either never sends the Reward Card or delays sending it such that new customer recipients don’t receive it until near or after the card’s short 150-day expiry period,” the class action lawsuit states. 

Further, Witte alleges AT&T may also attempt to offer customers a lesser value card than they were originally promised.

Witte claims AT&T’s offer of a $150 reward card persuaded her into signing a contract with the company last year to receive bundled television and internet services. 

While alleging she was told the reward card would arrive in the mail within six to eight weeks, Witte claims it never came during that time and that an AT&T representative eventually told her she was not eligible to receive it. 

Witte claims AT&T ultimately agreed to send her a $50 reward card instead, which she says she did ultimately receive. 

Monetary value of reward cards reduced by AT&T restrictions

Once activated, AT&T also places restrictions on the usage of the reward card, such as by freezing the card for an extended period of time if a threshold amount is spent. 

“AT&T’s processes, limitations and restrictions on the Reward Cards and, therefore, their adverse impact that reduces the actual monetary value of the Reward Card to the prospective new customer, are not adequately disclosed at the time new customers are induced to enter into their contracts for bundled services with AT&T,” the class action lawsuit states. 

Witte claims AT&T is guilty of negligent misrepresentation and unjust enrichment and in violation of Florida’s Unfair and Deceptive Trade Practices Act. 

Witte wants to represent a nationwide class and Florida subclass of AT&T customers who either never received their reward card, received it after it had already expired or were unable to activate it. 

Plaintiff is demanding a jury trial and requesting declaratory and injunctive relief along with compensatory, special, treble and general damages for herself and all class members. 

A similar class action lawsuit was filed against AT&T last year by a consumer in Florida who argued the company either never sent or sent nearly expired reward cards to new customers who switched to the provider.

Have you been promised a reward card for signing up with AT&T that you never received or were unable to activate? Let us know in the comments! 

The plaintiff is represented by William B. Federman and John Charles Sherwood of Federman & Sherwood; Gary S. Graifman and Melissa R. Emert of Kantrowitz, Goldhamer & Graifman P.C.; and James M. Evangelista, David J. Worley, Kristi Stahnke McGregory and Hannah Drosky of Evangelista Worley, LLC. 

The AT&T reward card class action lawsuit is Witte v. AT&T Services, Inc., et al., Case No. 3:22-cv-00274, in the U.S. District Court for the Northern District of Texas.

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