AT&T Settles Wireless Contract Dispute for $18 Million

Here's a good case where a wireless contract dispute worked in favor of the consumers. About a week ago, AT&T has decided to settle an ETF class action suit to the tune of $18 million! This settlement applies AT&T subscribers that paid a flat-rate ETF between January 1, 1998 and November 4, 2009.

These settlement appear to be a loss for AT&T but a closer look shows that paying a substantial amount to a class of complainants is actually cheaper for AT&T. Since thousands of folks are qualified for the settlement, individual settlements to be relatively minor. Of course, the lawyers will take the lion share of this wireless contract dispute settlement.

Anyway, Here is AT&T's statement on the settlement of the mobile phone contract dispute:

We strongly deny any wrongdoing, and no court has found AT&T Mobility committed any wrongdoing regarding these fees. However, we have agreed to settle to avoid the burden and cost of further litigation.

It's important to note that the litigation involves old early termination fee policies of the old AT&T Wireless and Cingular. In 2008 we introduced a new, more flexible early termination fee policy, in which we pro-rate the ETF if you are a new or renewing wireless customer who enters a one- or two-year service agreement.

That's it for this ETF class action suit settlement. Consumers that paid an AT&T flat-rate ETF between January 1, 1998 and November 4, 2009 should take advantage of this small victory. Click here for the claim form. Tune in for more wireless contract news and updates.