updated 04:25 pm EST, Tue January 26, 2010
AT&T offers $18m settlement over ETF lawsuit
Wireless provider AT&T has chosen to settle a class-action lawsuit over allegedly charging flat-rate early termination fees to its subscribers. If approved, the settlement will see the provider pay out $16 million in cash and $2 million in non-cash benefits to residents of New Jersey whose cell phone contracts included a flat-rate ETF provision after 1998. Subscribers haven't had to even pay the early termination fee to be part of the class action lawsuit.
AT&T charged between $150 and $175 for terminating contracts before they were fulfilled. Despite the settlement, the provider refuses to admit any wrongdoing regarding these accusations and told Electronista the move was to "avoid the burden and cost" of more legal action. In addition to downplaying the results, AT&T also claims that prorated ETFs begun in 2008 and should avoid any of these disputes in the future.
Those involved in the case are urged to visit a dedicated website.
A court case to determine the approval of the settlement is scheduled for April 14th.