This national class action alleged that prior to May 2003, when a customer of AT&T cancelled wireless service, AT&T’s uniform practice was always to “pro rate” the monthly service charge -- charging the customer only through the date of cancellation of service. AT&T, in the face of rapidly defecting subscribership, implemented a uniform company policy of not pro rating but instead charged its customers for a full billing cycle in the month in which the cancellation took place. It was alleged that this practice violated the existing terms and conditions of its Customer Service Agreements.
In the midst of the grueling class action battle, AT&T attempted to settle the case with another group of law firms who had filed a similar action in the Superior Court of New Jersey for just over $2 million. After a New Jersey judge had preliminarily approved the $2 million settlement, FBB&C alleged, amongst other things, that the proposed settlement was inadequate. FBB&C ultimately persuaded the Court that the settlement reached in the New Jersey action did not adequately compensate the class. In a well-reasoned, 11-page decision, the Honorable Judge Bernstein of the Essex County, New Jersey Superior Court concluded that “the settlement was unfair.” Shortly after the decision, AT&T approached FBB&C in an attempt to reach a more adequate settlement. In a remarkable turnaround and as a result of FBB&C’s efforts, the New Jersey court ultimately approved a revised settlement valued at over $47,000,000.
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