Global Tel*Link Class Action Alleges Unfair Rates for Inmates

The phone company Global Tel*Link Corp. (GTL), which provides service to 1.1 million inmates in jails across the United States, was hit with a proposed class action lawsuit June 12. Lead plaintiffs Jacqueline Mills Jacobs, Gregory William Jacobs and Arron Jacobs allege GTL has participated in unlawful conduct for years, including unfair rates for phone services and providing correctional facilities with kickbacks for contracting through them. They are seeking more than $5 million in damages on behalf of themselves and all potential Class Members.

The plaintiffs claim that without a competitive market to constrain prices, “[i]nmates are literally a captive market for GTL.” The Jacobs Family claims GTL charged up to 100 times the normal market rate for inmates to make intrastate telephone calls. The GTL lawsuit states that “families of incarcerated individuals often pay significantly more to receive a single 15 minute call from prison than for their basic monthly phone service.”

GTL is currently the phone system provided in 2,200 correctional facilities across 48 states. The lead plaintiffs allege that GTL is in violation of the Federal Communications Act by exploiting their position to charge unreasonably high prices. They also claim that the prison phone provider gives 45 percent kickbacks to contracting facilities in the form of “site commissions.” The plaintiffs estimate that the kickbacks exceed $124 million per year.

In addition to the unlawful conduct charges, the proposed GTL class action lawsuit seeks to represent a subclass that alleges GTL was also in violation of Arkansas deceptive trade practices. According to the Arkansas Deceptive Trade Act, it prohibits taking advantage of consumers who are unable to protect his/her interests for various reasons including: Physical infirmity, ignorance, illiteracy, and the inability to understand the language of the agreement.

The Arkansas subclass portion of the class action lawsuit alleges that due to the deceptive trade practice violations of GTL, potential Class Members have “suffered as a result of unwittingly being charged to fund the secret kickback payments and pay for exploitive fees and charges.” The lead plaintiffs seek to recover financial compensation for damages due to the amount of the unjust and unreasonable charges imposed as a result of kickbacks.

If approved, the GTL prison phone provider class action lawsuit would be open to all Class Members who paid to use the telephone systems provided by GTL or its subsidiaries in order to make or receive an intrastate telephone call involving an incarcerated person in all U.S. states, except for the state of New Jersey, anytime between Feb. 16, 2000 to the current day. The Jacobs family expects thousands to join once the class action lawsuit is approved.

The Jacobs family is represented by Amy C. Martin of Everett Wales & Comstock and Peter A. Muhic, Edward W. Ciolko, Donna Siegel Moffa and Monique Galloway of Kessler Topaz Meltzer & Check LLP.

The GTL Prison Phone Provider Class Action Lawsuit is Jacobs, et al v. Global Tel*Link Corporation, Case No. 15-cv-05136, in U.S. District Court for the Western District of Arkansas.

UPDATE: The GTL Prison Phone Provider Class Action Lawsuit was dismissed on August 27, 2018.  Top Class Actions will let our viewers know if a similar case is filed.