TracFone Straight Talk Class Action Settlement Update

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Consumers who purchased a Straight Talk, Net10, Simple Mobile or Telcel America wireless service plan that was advertised as including “unlimited data” but had their data throttled may be receiving checks in the mail within the next few months from a class action settlement.

According to a post on the TracFone settlement website, the class action settlement will become effective on Aug. 1, 2015 and checks will be mailed by Oct. 20, 2015.

TracFone Wireless was hit with a class action lawsuit back in 2013, which alleged it advertised its prepaid “Straight Talk” cell phone plans as having unlimited data without informing customers that their data access would be limited and subject to “throttling” or termination. According to the TracFone class action lawsuit, customers who complained about the data cap were told only that they had “misused” their data plans but were not provide with further explanation.

The Federal Trade Commission also filed a lawsuit against TracFone for allegedly misleading customers about its unlimited data plans since 2009. In January, TracFone agreed to settle the FTC lawsuit and provide refunds to consumers. An estimated 8 million TracFone users may qualify for benefits under the terms of the settlement.

The $40 million TracFone Straight Talk class action settlement received final approval from a California federal judge on July 2, over objections from a Class Member who thought the deal unfairly burdened potential claimants by requiring them to contact TracFone to find out if they had been affected by the alleged data throttling.

The plaintiffs urged the judge to approve the settlement despite the objections. According to their motion in support of the TracFone class action settlement, Class Members who filed claims are expected to receive between $16 and $65, depending on how their cell phone service was affected by the alleged throttling.

The deadline to file a claim for the TracFone unlimited data settlement passed on June 19, 2015.

More information about the status of the TracFone refunds can be found at www.PrepaidPhoneRefund.com.

The Class is represented by Michael W. Sobol, Roger N. Heller and Nicole D. Sugnet of Lieff Cabraser Heimann & Bernstein LLP, Daniel M. Hattis and Kirill M. Devyatov of Hattis Law, and John A. Yanchunis and J. Andrew Meyer of Morgan & Morgan Complex Litigation Group PA.

The TracFone Unlimited Data Class Action Lawsuit is In re: TracFone Unlimited Service Plan Litigation, Case No. 13-cv-003440, in the U.S. District Court for the Northern District of California.

UPDATE: Settlement Checks were mailed out to Class Members starting on Mar. 22, 2016 through Mar. 29, 2016. According to the Settlement Administrator, Class Members must cash their refund checks no later than July 20, 2016.

UPDATE: On Mar. 26, 2016, Top Class Actions readers have started receiving settlement checks! If you filed a claim for the TracFone “unlimited” data class action settlement, keep an eye on your mailbox because checks are on the way!