AT&T class action settlement benefits smartphone users
Smartphone users on AT&T were surprised by a text message last week notifying them that they will soon get a refund for mobile internet service taxes. AT&T has quietly settled a class action suit filed in response to violation of the federal Internet Tax Freedom Act, which prohibits from levying taxes on Internet access up to November 2014. However, AT&T, US's second largest mobile carrier, reportedly kept collecting and the question remains just how big is this. The service provider's last quarter revenues amounted to $4.8 billion from wireless data services only. Over the five-year span of the lawsuit this would multiply astronomically.
In the end, it all comes down to whether or not users get their own refund and according to the settlement website this should happen without them taking any action. All subscribers on Data Connect Plans, smartphone data plans such as those on the iPhone and the BlackBerry, or enterprise smartphone plans are among the potential beneficiaries.
It remains unclear if the settlement affects all of AT&T's data subscribers since the lawsuit had been filed in several states. Only then all of the cases were transferred to a US district court in Illinois. This raises concerns that other carriers might have taxed users also but that is still to be uncovered. Did you get AT&T's text message? Let us know.
1. clevername (Posts: 1431; Member since: 11 Jul 2008)
I was curious what this was about when I got he text from AT&T. The website isn't too specific about details. I wonder how much they're gonna pay.
2. LacyJ (Posts: 1; Member since: 05 Dec 2010)
Yeah I also got two text from AT&T as well. The website is very vague. From what I read...AT&T customers that are eligible don't have to do anything to receive benefits. The settlement will be decided on March 2011, but even after that it will take a while before anyone receives a check from AT&T. I have always been charged taxes and other fees from by AT&T for data on my iPhone. Anyway, also the attorneys fees will be paid out of each persons settlement check, which I personally think is crap, I think AT&T should have to pay this as well. Then you will receive a check in the mail for reimbursement for what they charged you over the course from 2005 up till you got the text message in taxes. Each persons settlement amount will be different. There is no way to know how much they will pay out for each person, but whatever it is, the attorneys that are heading up the claim will be paid I'm sure somewhere around 30-33% of whatever each person gets. It will probably be a very long time for customers to receive anything IF they receive anything at all.
3. John L (unregistered)
I didn't get any text messages but a check for $150 bucks showed up from at&t yesterday. I was really surprised. It doesn't come in a regular envelope, but rather one of those perforated sides type of thing like your w4's you get from your employer. It was addressed from at&t, but it didn't look like the bill and I was wondering what it was, and as I opened it I saw it was a check. The class action lawsuit settlement popped into my head, and I'll admit, I was surprised when I saw the amount of $150! Honestly didn't even realized I was getting rooked in the first place, so getting $150 bucks out of the blue is actually really nice.
4. mssflblack (Posts: 1; Member since: 20 Jun 2011)
Mary L,I didn't get a text messages yet , but still waiting what the out come . I have been with AT&T for some years now and I have not gotten anything from the class action lawsuit not yes still waiting.