A settlement has been reached in two class actions alleging that AT&T Wireless engaged in unfair, deceptive and misleading bill practices. The settlements, which were approved today by the Honorable Christina A. Snyder, require that AT&T Wireless pay benefits to the class members up to approximately $80,981,548 as set forth in more detail below.
CASE NAMES: Paul Lozano v. AT&T Wireless and Heather Stern v. AT&T Mobility
TYPE OF CASES: Class Action
JUDGE: The Honorable Christina A. Snyder – United States District Court, Central District of California
PLAINTIFFS REPRESENTED BY: Peter J. Bezek and Robert A. Curtis of FOLEY BEZEK BEHLE & CURTIS, LLP; J. Paul Gignac of ARIAS OZZELLO & GIGNAC, LLP
FACTS: On November 15, 2010, after eight and a half years of litigation, the United States District Court approved two class action settlements, Paul Lozano v. AT&T Wireless and Heather Stern v. AT&T Mobility, requiring that AT&T Wireless pay benefits to the class members up to approximately $80,981,548.
Plaintiff Paul Lozano initially contracted with AT&T Wireless in May of 2001 under a monthly calling plan called the Digital Advantage Plan, which provided Plaintiff Lozano with 400 “Included Minutes” per month at a cost of $29.99 per month. In September 2001, Plaintiff Lozano noticed something peculiar on his AT&T Wireless bill. Although Plaintiff Lozano’s bill for that month covered a billing cycle beginning August 17, 2001 and ending September 16, 2001, 136 minutes (or $54.40) appeared on his bill for calls that were placed or received during the prior month’s billing cycle. Plaintiff Lozano later learned that he had been the victim of a phenomenon which AWS refers to as “out-of-cycle billing.”
The Lozano class action involves the unfair, deceptive and misleading practices engaged in by AT&T Wireless of: (a) billing consumers for out-of-cycle billing; and (b) failing to fully and adequately disclose to its customers the likelihood, impact and absence of any means to avoid out-of-cycle billing. Plaintiff Heather Stern visited the AT&T Wireless store and enrolled in a two-year wireless telephone service plan. Before leaving the store with her new service plan, Plaintiff Stern was not asked to sign any document or otherwise acknowledge that she would be receiving any services other than the monthly calling plan. Thereafter, without her consent, AT&T Wireless began charging Plaintiff Stern for various “monthly service charges,” including charges for “ENH DISCOUNT INTL DIAL” (at the rate of $3.99/month) and “MMODE/DATA SERVICE” (at the rate of $2.99/month). Neither charge was authorized by Plaintiff Stern.
The Stern class action involves the unfair, deceptive and misleading practices engaged in by AT&T Wireless of: (1) assessing charges on its customers’ bills for services not authorized by its customers (a practice known as “cramming”); and (2) failing to clearly and accurately describe the services which are the subject of the charges.
As a result, these two Plaintiffs sought the help of Foley Bezek Behle & Curtis, LLP and Arias Ozzello & Gignac, LLP, who together filed two separate class action lawsuits against AT&T Wireless in the Central District of California. AT&T Wireless fought the Lozano case for eight and a half years and the Stern case for six years before finally agreeing to settle both case.
RESULT: The settlement reached on behalf of both class actions and approved by the United States District Court requires AT&T Wireless to pay benefits to all class members who submit a claim up to approximately $80,981,548. The reaction of the members of this class to this settlement was extremely positive as less than 50 of the more than 10,000,000 class members (or 0.0005%) opted-out of the settlement at the final approval hearing.