Wal-Mart Hit with Cellphone Insurance Class Action Lawsuit

On Nov. 7, Wal-Mart Stores Inc. was hit with a cellphone insurance class action lawsuit alleging the company falsely advertised its cellphone insurance plans. The plaintiff alleges the popular retailer knowingly advertised and sold this insurance plan to consumers with cellphones that were too expensive to actually covered by plan.

Plaintiff Charles Balzer filed this Wal-Mart class action lawsuit in Los Angeles Superior Court last week claiming he bought two cellphones from a California Wal-Mart location last April. Each phone cost $299 and at the time of purchase Balzer allegedly also agreed to buy accidental damage insurance. The plaintiff claims a Wal-Mart employee informed Balzer that the insurance plans would protect both phones for two years.

However, according to the Wal-Mart cellphone insurance class action lawsuit, in August 2013, Balzer called the insurance company and discovered the cellphone insurance plans only covered phones worth $199 or less. Based on these claims, Balzer essentially paid for worthless insurance plans that could not protect the phones as advertised.

The cellphone insurance class action lawsuit claims, “Had Wal-Mart properly marketed, advertised and represented the class products as only covering mobile phones up to $199, plaintiff would not have purchased the mobile phone accidental damage plan.” The cellphone insurance plans advertised and sold by Wal-Mart were issued by Asurion Service Plans Inc., but issued through and managed by T Mobile US Inc.

Balzer seeks to represent himself and a Class of “All persons within the last four years that purchased Class Products from Wal-Mart,” according to the Wal-Mart cellphone insurance class action lawsuit. He is seeking an injunction to block the nationwide retailer from advertising and selling the plans, as well as reparations for himself and other Class Members for damages incurred.

According to the Wal-Mart class action lawsuit, “Plaintiff and other Class Members ended up with an insurance plan that turned out to actually be invalid, and therefore plaintiff and other Class Members have suffered an injury in fact.” Balzer alleges the retail giant also received unjust enrichment from the cellphone insurance plans through sales profit; therefore, the plaintiff is seeking disgorgement of profits derived from these insurance plans.

Overall, the Wal-Mart cellphone insurance class action lawsuit brings several allegations against the retailer including claims of violation of the California False Advertising Act, California’s Unfair Business Practices Act, Consumers Legal Remedies Act, and a claim the company breached a quasi-contract.

Charles Balzer is represented by Brett Shainfeld and Jessica F. Anvar of Shainfeld & Anvar PC and Todd M. Friedman of the Law Offices of Todd M. Friedman PC.

The Wal-Mart Cellphone Insurance Class Action Lawsuit is Balzer v. Wal-Mart Stores Inc., Case No. BC563305, in the Superior Court of the State of California, County of Los Angeles.