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AT&T Class Action Settlement

Judge Susan Illston of the Northern District of California submitted an order granting final approval of a nationwide class settlement on behalf of more than 23 million AT&T class members. Plaintiffs Joy Nwabueze and Amelia Terry alleged that there had been unauthorized charges on their bills placed by billing aggregators on behalf of third-party providers and collection services. AT&T refused to acknowledge any wrongdoing and vigorously defended its actions.

Caddell & Chapman began as Co-Lead Counsel for a California-only class of consumers, but as the litigation progressed, our team joined with attorneys from Chicago to prosecute national claims against AT&T, the settlement of which provided consumers with reimbursement of 100% of the unauthorized charges.

In addition to the settlement, AT&T no longer permitted third-party charges for enhanced services and agreed to inform its current customers regarding precisely what kinds of third-party billing it still permitted. Moreover, AT&T was required to pay class counsel’s attorneys’ fees in an amount of up to $5,500,000, and incentive awards for the class representatives up to $5,000 each. Additionally, AT&T was responsible for paying the settlement administrator, a cost estimated to exceed $15,000,000.

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