Clearwire Internet Class Action Settlement

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Clearwire Internet Class Action Settlement

By Mike Holter

Clearwire Corporation has reached a class action lawsuit settlement to resolve customer allegations that its Internet speeds were slower than advertised and that it prevented customers from terminating their contracts despite providing poor Internet and phone service. If approved, the Clearwire class action settlement will provide credits to current customers and cash payments to former customers who file a timely Claim Form.

The Clearwire settlement will resolve two class action lawsuits, entitled Dennings v. Clearwire Corp. and Newton v. Clearwire Corp., that claimed, among other things, that Clearwire misrepresented its Internet service speed, intentionally slowed customers’ Internet service speeds without proper disclosure, provided poor Internet and phone service and/or imposed early termination fees (“ETFs”) that prevented customers from terminating despite poor service or required them to pay the ETF.

Clearwire denies the allegations but has agreed to a class action lawsuit settlement to avoid the expense of further litigation.

Class Members of the Clearwire class action lawsuit settlement include all persons or entities that purchased Clearwire’s retail services between November 14, 2004 and February 27, 2012 and provided Clearwire with a billing address in the United States.

Under the proposed Clearwire Internet class action lawsuit settlement, Clearwire will provide credits (to current customers) or make payments (to former customers) who submit a valid Claim Form by January 9, 2013. The amount of money or credit you can receive from the Clearwire settlement will depend upon which Settlement Group you fall into:

Group 1. Eligible Claimants who paid an ETF to Clearwire after cancellation due to concerns over service quality will receive 50% of the amount of the ETF paid;

Group 2. Eligible Claimants who initiated Clearwire service before September 1, 2010 and who experienced impaired Internet speeds and believe Clearwire was responsible will receive (i) $14.00 plus (ii) the following amounts for each month of service prior to February 27, 2012 during which Clearwire’s records show it managed the Eligible Claimant’s Internet speed at one of the following levels for at least one hour in the aggregate for that month: (A) 0.25 Mbps: $5.00; (B) 0.60 Mbps: $3.00; (C) 1.0 Mbps: $2.00.

Group 3. Eligible Claimants who initiated Clearwire service on or after September 1, 2010 and who experienced impaired Internet speeds and believe Clearwire was responsible will receive the following amounts for each month of service prior to February 27, 2012 during which Clearwire’s records show it managed the Eligible Claimant’s Internet speed at one of the following levels for at least one hour in the aggregate for that month: (A) 0.25 Mbps: $5.00; (B) 0.60 Mbps: $3.00; (C) 1.0 Mbps: $2.00. Group 3 Eligible Claimants will receive no less than $7.00, without regard to the number of months (if any) during which Clearwire managed their Internet speed.

The only way to obtain a cash payment or credit from the Clearwire Internet class action settlement is to file a claim form online at www.DenningsSettlement.com or mail it to the Settlement Administrator. Claim Forms must be submitted or postmarked no later than January 9, 2013.

Claim Forms and more information on your rights in the Clearwire Internet Speed Class Action Lawsuit Settlement can be found at www.DenningsSettlement.com.

Updated September 24th, 2012

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