Frequently Asked Questions
- What is this lawsuit about?
- Why is there a settlement?
- Who is included in the settlement?
- Who are the lawyers representing the class in this case?
- What does the settlement provide?
- How can I obtain a payment under the settlement?
- What am I giving up to obtain a payment or stay in the class?
- How can I exclude myself from the class and settlement?
- How can I tell the Court what I think about the settlement?
- When and where will the Court hold a hearing on the fairness of the settlement?
- Do I have to come to the hearing? May I speak at the hearing?
- What happens if I do nothing at all?
- How do I get more information?
This class action alleges that, in January 2004 or thereafter, AT&T billed the $3.95 monthly recurring charge for pre-subscribed residential long-distance service under AT&T’s Basic Rate Plan plus related charges, fees, and taxes (referred together as the “$3.95 MRC”), to hundreds of thousands of people who were listed in AT&T’s database as residential long-distance customers but who Plaintiffs contend were not AT&T’s customers.
The complaint alleges 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 has not decided in favor of either side in the case. 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. Plaintiffs and their attorneys assert the settlement is in the best interests of the class because it provides a substantial recovery now while avoiding the risk, expense, and delay of pursuing the case through trial and any appeals.
Who is included in the settlement?
The class covered by the settlement is defined as follows:
All persons who were charged the $3.95 MRC (monthly recurring charge) beginning in January 2004, paid such charges, were not credited or refunded such charges, and did not use AT&T long-distance telecommunication services at any time on or after August 1, 2001.
Excluded from the class are (a) AT&T and its parent companies, affiliates, subsidiaries, divisions, successors-in-interest, successors, predecessors-in-interest, predecessors, assigns, agents, employees, affiliated independent contractors, managers, officers, directors, attorneys, and other persons representing them or acting on their behalf; (b) people for whom AT&T has evidence of authorization to submit a preferred carrier change order, so as to become an AT&T subscriber, at any time on or after August 1, 2001; (c) any judge to whom the lawsuit is assigned and his or her immediate family; and (d) all persons who submitted valid requests for exclusion from the class.
Who are the lawyers representing the class in this case?
For purposes of the settlement, the Court has appointed the Plaintiffs named in the lawsuit to serve as the class representatives. The Court has also appointed the following attorneys and law firm to represent the class as legal counsel: Daniel C. Girard, A. J. De Bartolomeo, and Aaron M. Sheanin, Girard Gibbs LLP, 601 California Street, 14th Floor, San Francisco, California 94108.
Plaintiffs’ Counsel requested an award of attorneys’ fees and expenses of $2,420,000 for the work they did over the past four years pursuing the case and obtaining the settlement on behalf of the class, plus reimbursement of expenses incurred in the case. Plaintiffs’ Counsel also requested an incentive award of $5,000 for each of the two class representatives, for their time, effort and expenses in pursuing the case on behalf of the class. The Court approved these awards and they will be paid separately by AT&T. You will not have to pay anything toward the fees or expenses of Plaintiffs’ Counsel or toward the incentive awards for the two class representatives. Plaintiffs’ Counsel sought final approval of the settlement on behalf of all class members. You may hire your own lawyer to represent you in this case if you wish, but it will be at your own expense. The Court granted final approval of the settlement on September 4, 2008.
What does the settlement provide?
The following description of the settlement benefits is qualified in its entirety by reference to the Stipulation of Settlement, a copy of which has been filed with the Court.
Since The Settlement Was Approved:
- You Will Receive A Cash Payment, as described in the Notice.
- You Will Not Have To Pay AT&T For The $3.95 MRC (monthly recurring charge).
- AT&T Will Pay Additional Litigation Costs, including costs of giving notice to the class and settlement administration; any 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.
How can I obtain a payment under the settlement?
To request a payment, you must complete and send in a claim form. Please provide all requested information; sign and date the form; and mail it to the Claims Administrator's address provided on the form, postmarked no later than January 31, 2009. You may also fill out a claim form on this website, so that it is submitted no later than January 31, 2009. If filing online, you must also mail a signed Certification to the Claims Administrator postmarked no later than January 31, 2009.
To receive a payment, you must certify that you were billed the $3.95 MRC (monthly recurring charge), paid the charges, and did not receive a refund or a credit.
If the charges for the $3.95 MRC appeared in the bill you received from your local telephone company, please read the following:
If you were billed the $3.95 MRC from your local telephone company, you may choose to provide a good faith estimate of the number of months that you believe you were billed and paid the $3.95 MRC, and did not receive a refund or a credit. The amount of money you receive in the settlement will depend upon whether you provide this estimate.
- If you estimate that you were billed and paid the $3.95 MRC for 3 months or less, or you do not give an estimate of the number of months you were billed, AT&T will pay you $25.
- If you estimate that you were billed and paid the $3.95 MRC for more than 3 months, and you do not submit any other documentation, AT&T will pay you $50.
- If you estimate that you were billed and paid the $3.95 MRC for more than 6 months, and you submit any bill showing at least one payment of the $3.95 MRC, AT&T will pay you the greater of $50 or $8 for each month you believe you were billed, up to a total of $100.
- If you estimate that you were billed and paid the $3.95 MRC for more than 6 months, and you submit any document showing that you tried to dispute being classified as an AT&T customer (such as a copy of a letter, e-mail message, or notes of a telephone conversation), AT&T will pay you the greater of $50 or $8 for each month you believe you were billed, up to a total of $150.
If the charges for the $3.95 MRC appeared in the bill you received directly from AT&T, please read the following:
- AT&T will pay you $10. Under the settlement, persons billed the $3.95 MRC directly from AT&T are entitled less money than persons billed the $3.95 MRC from their local telephone company because AT&T was more likely to prevail on claims brought on behalf of persons it billed directly. Had AT&T prevailed on those claims, persons billed the $3.95 MRC directly from AT&T would have received nothing.
What am I giving up to obtain a payment or stay in the class?
You must have stayed in the class to obtain a settlement payment. By staying in the class, you will give up any right you may have to pursue, continue to pursue, or be part of any other lawsuit against AT&T or its affiliates concerning the billing or collection of the $3.95 MRC (monthly recurring charge). Also, you will be bound by all of the Court’s orders in this case, including the judgment dismissing all claims asserted on behalf of the class.
To keep any right you may have to sue or continue to sue over the $3.95 MRC, as described above, you must have excluded yourself from the class.
How can I exclude myself from the class and settlement?
The deadline to exclude yourself from the class and settlement was August 22, 2008.
How can I tell the Court what I think about the settlement?
The deadline to comment or object to the settlement was August 22, 2008.
When and where will the Court hold a hearing on the fairness of the settlement?
The Court held a hearing on September 4, 2008, at 9:30 a.m., 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 and approved Plaintiffs’ Counsel's application for incentive awards, attorneys’ fees and expenses.
Do I have to come to the hearing? May I speak at the hearing?
You did not need to attend the hearing to remain a class member or obtain a settlement payment.
The deadline to submit a notice of your intention to appear at the fairness hearing in Stokes et al. v. AT&T, Case No. 04-433 DRH was August 22, 2008.
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.
What happens if I do nothing at all?
If you do nothing, you will receive no payment from the settlement. You will still be part of the class, however, and will give up any right you may have to pursue, continue to pursue, or be part of any other lawsuit against AT&T or its affiliates concerning the billing or collection of the $3.95 MRC.
How do I get more information?
For full details, you may wish to review the Stipulation of Settlement dated May 23, 2008. You can also get more information by calling toll-free 1 (800) 765-8148. The Stipulation of Settlement and all other pleadings and papers filed in the lawsuit are available for inspection and copying during regular business hours at the Office of the Clerk of the Court, United States District Court for the Southern District of Illinois, 750 Missouri Avenue, East St. Louis, Illinois 62201.