Michelle Steiner

This is good news for those of us who terminated our Verizon contracts when
we got our iPhones.

-- Michelle

http://online.wsj.com/article/BT-CO-...30-710528.html

(Updates with comment from Verizon Wireless; adds background)
By Roger Cheng Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--A California appeals court upheld a $21 million
refund that Verizon Wireless will have to pay to some of its customers as a
result of a settlement of a class-action lawsuit over its early termination
fees, according to the lawyer representing the plaintiffs.

Each person in the class-action claim is estimated to receive $87.50 after
challenging the carrier's practice of charging a $175 fee for breaking a
wireless-service contract early.

"Yesterday's ruling by the Court of Appeal confirms that this is a terrific
settlement for Verizon Wireless customers, and now more than 175,000 of
those customers will get a substantial refund," said Scott Bursor, lead
attorney for the plaintiffs.

A spokesman for Verizon Wireless said the settlement ended all of its early
termination fee-related litigation, and doesn't relate to how the carrier
currently charges those fees.

Early termination fees have long been a hot-button issue for consumers and
regulators, leading to increased scrutiny and legal action over the
practice. The carriers argue the fees are necessary because they offset the
costs incurred when subsidizing cellphones for subscribers. A basic Apple
Inc. (AAPL) iPhone 4, for instance, would cost $200 with a two-year
contract, but $600 if purchased without a service plan.

The legal victory won't have a huge effect on current practices. The
California case centered on the charging a flat $175 fee despite when a
customer breaks the contract, so the amount would be the same if the person
canceled the service in the first month or 23rd month.

Since 2006, Verizon Wireless has begun to lower the early termination fee
after each month goes by in a subscriber's contract, a practice that all of
the carriers have shifted to.

The original complaint dates back to 1999.

A settlement was agreed upon in 2008, but two appeals were filed. An
appeals court based in Alameda, Calif., rejected the appeals on Tuesday,
noting the awards were justified.

The funds have been kept in an escrow account. They can't be distributed
until all appeals are used up, Bursor said, adding he expects the process
to be completed within the next 60 days.

Verizon Wireless raised eyebrows when it increased its early-termination
fee on smartphones late last year. Earlier this month, AT&T Inc. (T) also
raised its early-termination fee on smartphones. Both say the heavy
subsidies they pay for expensive smartphones justify the move.

Verizon Wireless is jointly owned by Verizon Communications Inc. (VZ) and
Vodafone Group PLC (VOD, VOD.LN).

--
Check out the Hot Cocoa Party
<http://www.hotcocoaparty.info>

Wes Groleau

On 07-01-2010 20:31, Michelle Steiner wrote:
> The funds have been kept in an escrow account. They can't be distributed
> until all appeals are used up, Bursor said, adding he expects the process
> to be completed within the next 60 days.

I've been eligible several times for such a settlement.
If this is anything like ALL of those, you will get a letter
telling you that if you don't opt out, and if the settlement
is approved, that you will get two or three dollars, the
original plaintiff will get a couple thousand, and the lawyers
will get several million.

--
Wes Groleau

Nutrition for Blokes: Re-engineering your diet for life
http://www.phlaunt.com/quentin

Michelle Steiner

In article <i0jpa1$5gu$1@news.eternal-september.org>,
Wes Groleau <Groleau+news@FreeShell.org> wrote:

> > The funds have been kept in an escrow account. They can't be
> > distributed until all appeals are used up, Bursor said, adding he
> > expects the process to be completed within the next 60 days.
>
> I've been eligible several times for such a settlement. If this is
> anything like ALL of those, you will get a letter telling you that if
> you don't opt out, and if the settlement is approved, that you will get
> two or three dollars, the original plaintiff will get a couple thousand,
> and the lawyers will get several million.

In this particular case, everything has been approved, and all the members
of the class will get $87.50. This should have been settled two years ago,
but someone contested the settlement, and took it to court. They lost.

--
Check out the Hot Cocoa Party
<http://www.hotcocoaparty.info>