RCN Telecom misleading fees $11.5M class action settlement

RCN Telecom Services has designated $11.5 million as part of a class action lawsuit settlement to resolve claims the company engaged in charging misleading fees that were not disclosed during the sign-up process.

The fees settlement class is defined as all current and former RCN Telecom customers in the United States who were charged and paid a ‘Network Access and Maintenance Fee’ between Nov. 1, 2017, and Sept. 13, 2022.

The original complaint alleged RCN Telecom promised a flat monthly rate for internet service but then charged higher monthly rates with a “Network Access and Maintenance Fee” of $4.37 on top of the advertised price. 

The lawsuit claims consumers were not told of the fee until their first bill arrived. Even then, the fee was included in the “taxes, surcharges, and fees” portion of the bill. According to the lawsuit, RCN directs consumers to its website regarding the fee, where it “lies” to the customers and tells “them it is a tax or government-related fee over which RCN has no control.” 

The class action lawsuit says the fee is not a tax or government-mandated fee, but a ploy to deceive consumers and charge more. The increase climbed from $1.97 per month in 2017 to the current rate of $6.97 per month. The complaint alleged RCN Telecom was in violation of at least four New Jersey laws:

• The New Jersey Consumer Fraud Act
• The New Jersey Truth in Consumer Contract Warranty and Notice Act
• New Jersey common law
• New Jersey Declaratory Judgment Act

RCN Telecom Services, originally Residential Communications Network, is the sixth-largest telecommunications provider in the United States, operating in 10 states, the company website says. Its parent company is Astound Broadband.

RCN Telecom disputes the claims made in the class action lawsuit but said it is paying the amount due to ongoing litigation risk and costs associated with the claims.

The RCN Telecom fees class action settlement will pay a range from 20% to 80% of allocated losses, depending on when the class member signed up for the service. A class member could receive as much as $159.82.

Class members will receive their choice of a bill credit (if a current customer) or a check or electronic payment. 

The refunds will depend on whether the class member chooses a credit or payment, when the member was a subscriber and the number of members who make a claim. 

Those who do nothing will not receive a settlement payment or credit. 

Those who wish to exclude themselves from the RCN Telecom fee class action settlement may do so in writing by Jan. 6, 2023. 

A final approval hearing is set for Jan. 26, 2023.

Class members wanting a payment or credit must submit a claim form by Jan. 11, 2023.

Who’s Eligible

Current and former RCN Telecom customers in the United States who were charged and paid a ‘Network Access and Maintenance Fee’ between Nov. 1, 2017, and Sept. 13, 2022

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

01/11/2023

Case Name

Grillo, et al. v. RCN Telecom Services, LLC et al., Case No. MER-L-1319-22, in the Superior Court of New Jersey for Mercer County

Final Hearing

01/26/2023

Settlement Website

RCNNAMSettlement.com

Claims Administrator

Grillo v RCN Telecom
c/o Kroll Settlement Administration LLC
PO Box 5324
New York, NY 10150-5324

Class Counsel

Stephen P DeNittis
Joseph Osefchen
Shane Prince
DENITTIS OSEFCHEN PRINCE PC

Daniel M Hattis
Paul Karl Lukacs
HATTIS & LUKACS

Defense Counsel

David E Sellinger
Todd L Schleifstein
GREENBERG TRAURIG LLP