AT&T, Verizon pay $116M to settle overcharging claims - Mobile World Live

AT&T, Verizon pay $116M to settle overcharging claims

25 SEP 2020

AT&T and Verizon agreed to pay a combined $116 million to settle a long-running lawsuit over claims they overcharged hundreds of government and education customers for mobile services.

Under the terms of a deal approved by a county court judge in California, Verizon will pay $68 million and AT&T $48 million.

While monies will go to nearly 300 state and local government organisations, 40 per cent is payable to OntheGo Wireless, a tariff analysis company which initated the lawsuit, under whistle-blowing laws.

T-Mobile US and Sprint previously settled claims in the case for a combined $9.6 million.

Including additional settlements from a related action in Nevada, the four operators agreed to pay a total of $138.7 million to end the litigation.

In 2012, OnTheGo Wireless alleged the operators had failed to meet contractual requirements to identify optimal tariffs for government customers since 2005.

It claimed the customers had suffered financial damages of at least $500 million as a result of the operators not offering the lowest price available on a quarterly basis.



Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

Read more