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Overview

IMPORTANT UPDATE: PLEASE BE ADVISED THAT THE DISTRIBUTION OF SETTLEMENT BENEFITS TO ELIGIBLE CLASS MEMBERS COMMENCED ON OR ABOUT OCTOBER 8, 2009.

The Court approved settlement concerned people who were billed for a $3.95 monthly recurring charge (MRC) for pre-subscribed residential long-distance service under AT&T’s Basic Rate Plan by AT&T at some point since January 2004, even though they had not used AT&T for residential long-distance telephone service since August 2001. The lawsuit alleges that AT&T had no right to bill these people for the charge. Under the settlement, AT&T paid all valid claims from class members; notice and administrative costs; and attorneys’ fees and expenses.

The complaint alleged AT&T’s actions violated the Federal Communications Act, 47 U.S.C. §§ 201-202, the Illinois Uniform Deceptive Trade Practices Act, 815 ILCS 510/1 et seq., and the Illinois Consumer Fraud Act, 815 ILCS 505/1 et seq., and gave rise to claims for unjust enrichment, and for money had and received.

The Court in charge of this case has approved the settlement. AT&T denies all allegations of wrongdoing or liability against it. AT&T says it is settling to avoid the burden and expense of continued litigation. Payments were made to qualified class members on or about October 8, 2009.

Benefits to the Class

Since The Settlement Was Approved:

  • If You are a Qualified Class Member and Filed a Valid Claim, You Were Mailed a Cash Payment as described in the Notice on or about October 8, 2009.
  • You Do Not Have to Pay AT&T for the $3.95 MRC (monthly recurring charge).
  • AT&T Paid Additional Litigation Costs, including costs of giving notice to the class and settlement administration; Court-approved incentive awards to the named plaintiffs; and the Court-approved award of attorneys’ fees and expenses to Plaintiffs’ Counsel. The settlement requires AT&T to pay out a minimum of $1,500,000 for class members’ claims, notice costs and administrative expenses. If the sum of class member payments, notice costs and administrative expenses is less than $1,500,000, the remainder will be donated to charity or paid as determined by the Court. There is no maximum limit on the total amount AT&T may have to pay on class members’ claims.

Exclusions and Objections

The deadline to exclude yourself from the settlement class or object to the settlement was August 22, 2008. For more details on exclusion and objection procedures, please consult the Notice.

Fairness Hearing

The Court held a hearing on September 4, 2008 in Courtroom 7, on the third floor, of the United States District Court for the Southern District of Illinois, 750 Missouri Avenue, East St. Louis, Illinois 62201. At the hearing, the Honorable David R. Herndon, Chief Judge of the Court, granted final approval of the settlement.

Please note the following important dates:
   Date Case-Related Event
August 22, 2008
[Expired]		 Request for Exclusion Deadline (postmarked)
August 22, 2008
[Expired]		 Objection Filing Deadline (postmarked)
September 4, 2008
at 9:30 a.m.
[Approved]		 Fairness Hearing
January 31, 2009
[Expired]		 Claim Form Deadline (postmarked)