AT&T Settles In Class Action Suit Over Fees and Taxes

Here's some good news for Cingular/AT&T customers who paid for mobile internet services between November 1, 2005, and September 7, 2010. The carrier has decided to settle the conflict over collected taxes on mobile data plans.

The carrier was hit with a class action lawsuit filed over the improper collection of some taxes and fees. Apparently, AT&T collected the fees and taxes even after some states and local governments ceased requiring the payment of certain taxes on mobile data plans. Thus, a class action suit was filed.

The U.S. District Court for the Northern District of Illinois granted preliminary approval of the settlement on Aug. 11, 2010, and the carrier has requested the judge to issue a final approval of the settlement.

AT&T denied any wrongdoing in a statement to the folks at Phonescoop,

"AT&T Mobility collected only those taxes that we believed we were required to collect, and turned them over to the appropriate taxing bodies. We strongly deny any wrongdoing, and no court has found that AT&T Mobility committed any wrongdoing. However, we agreed to settle these cases to avoid the burden and cost of further litigation, and to facilitate any tax refunds that we may be able to obtain for our customers."

So what is the result of this settlement?

Well, AT&T will no longer charge some taxes and fees on data plans. The carrier will refund its customers from whatever monies are reimbursed by the state and local governments involved.

Do you think that you deserve a piece of this settlement? Consumers that take Data Connect Plans (wireless Internet on your PC), Smart-phone Data Features bolt-ons, smartphone data plans, iPhone data plans, personal Blackberry plans, or enterprise smartphone plans are all potentially included in the settlement.

That's it for this update. TUne in o more wireless contract related news and updates.