Legal Issues

by Carlo Longino


Filed Under:
class action, overcharge

Companies:
cingular



Court Tells Cingular It Can't Deny Lawyers Chance To Make Money

from the how-dare-you dept

The Washington state Supreme Court has ruled that a class-action lawsuit against mobile operator Cingular (now called AT&T) can proceed, despite a clause in the contracts it has subscribers sign preventing them from starting such actions. The suit in question alleges that Cingular overcharged some customers in the state for some roaming and long-distance calls, with a lawyer for the customers saying they were overcharged by $1 to $40 per month. Will this help the customers recover the charges and receive compensation in line with the overcharging? That seems unlikely, since all that's really happened is the court's given lawyers a green light to pursue a paycheck.

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  1. identicon
    Nasty Old Geezer, 16 Jul 2007 @ 7:32am

    Re: Class Action

    Class actions are more about who loses than who wins. I would not sue for $20, and out of a million people maybe 10 would actually sue individually over that amount.

    Without class actions, large companies could take their chances on bet that they would make a lot of money. With class actions -- if they lose, it is usually big dollars in lawyers fees (both sides) and big dollars administering the settlement.

    Customers rarely win anything of significance, but the risk goes way up for the companies and helps keep them in line.

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