MaryGrace A. Coneff v AT&T
Consumers Go Ahead With Lawsuit Against AT&T Inc.
* Class action on Cingular/AT&T deal allowed to proceed
* Customers say being forced to pay fees, buy phones.
A U.S. District Court ruled on Wednesday that consumers can go ahead with a class action lawsuit against AT&T Inc (T.N) that stems from the 2004 merger of Cingular Wireless and AT&T Wireless.
The case arose from complaints from customers after the merger that they were being forced to pay fees and buy new phones to transfer their service plan from the AT&T Wireless network to Cingular, now operating under the AT&T brand.
AT&T argued customers should channel their complaints through individual arbitration rather than class actions, but a U.S. District Court for the Western District of Washington in Seattle ruled against the company on Wednesday, allowing a class action to go ahead.
But a transfer came with obligations including an $18 transfer fee to Cingular and the purchase of a new phone from Cingular. Customers who did not accept the transfer fee had to put up with a degraded service until the end of their service contract or pay a $175 early termination fee.
Harvey Rosenfield
Consumer Watchdog
1750 Ocean Park Blvd.
Ste 200
Santa Monica, CA 90405
Phone
310-392-0522
Fax
310-392-8874
