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AT&T Settles Over Disputed Third Party Content Fees

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AT&T (NYSE: T) has settled a suit over third-party content fees in which consumers claimed they were being charged for content they didn’t want, reports AP. AT&T customers can now claim for refunds for false charges that appeared on their bill from January 1, 2004 to May 30, 2008. The settlement—which involved a group of 16 class actions—is the first from a national carrier—though AT&T refused to “admit wrongdoing.” Verizon Wireless (NYSE: VZ), Sprint (NYSE: S) Nextel and T-Mobile USA are also being sued over similar accusations. 

SEE ALSO: AT&T Mobility To Pay $2.5M To Florida AG For Faulty Ringtone Billing; $10M-$45M in User Refunds

It’s unclear how much the settlement is costing AT&T, which tried to downplay the impact. A company spokesperson said that the number of refunds should be “small,” as the carrier already lets customers dispute charges they believe are false. They will also pay the plaintiff’s legal fees—$4.3 million.

In March, AT&T reached a settlement with the Florida Attorney General’s office over disputed content charges, in which they agreed to refund Florida customers, as well as pay a $2.5 million fine, plus another $500,000 to be used to teach consumers about safe mobile use. At the time, it was estimated that refunds to customers could cost anywhere from $10-$45 million depending on how many applied for one.

Jun 3, 2008 4:42 AM ET

Posted In: Entertainment, Legal, Companies, AT&T

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