District Court approves $14 million wireless rates settlement

Courts Class Action Consumer Finance Fees Settlement

On November 8, the U.S. District Court for the Northern District of California granted final approval to a $14 million settlement resolving allegations that a telecommunications company made misleading claims regarding its administrative fees. According to the plaintiffs’ memorandum of points and authorities in support of motion for preliminary approval of class settlement, current and former wireless-service customers of the defendant (plaintiffs) with post-paid wireless service plans were charged an improper administrative fee. The plaintiffs alleged, generally, that the defendant’s representations and advertisements regarding the monthly price of its post-paid wireless service plans were misleading because the prices did not include the administrative fee, and that the defendant implemented and charged the administrative fee in a deceptive and unfair manner. According to the terms of the $14 million settlement agreement, $3.5 million of the award will cover attorney fees and costs, with additional funds allocated to cover litigation expenses.